About The Property

6720 Franklin is a vintage 1920’s character brick building located in the rapidly developing center of Hollywood, located 2 blocks north of Hollywood Blvd. and Highland Ave. This value-add opportunity generated approx. $57,300+ in gross monthly income with the opportunity for 28% upside in rents. 6720 Franklin represents an opportunity to acquire a beautiful “Old World”property in an excellent location, while still providing substantial value-add potential through continued renovations and rent increases

Stats

Price $7,526,000

Year Built 1928

City Hollywood

Units 37

Current CAP 5.61%

Proforma CAP 8.10%

Price p/ Sq. ft. $150

Background

This beautiful “Old World” property is blocks from the rapidly-developing center of Hollywood, one block north of Hollywood Blvd and Highland Ave. In addition to the property’s strategic location, 6720 Franklin presented a significant value-add opportunity as rents were approx. 28% below market value. This property was referred to KST by a Compass Hollywood residential agent, and sold in conjunction with a nine-unit value-add property in East Hollywood.

Challenge

We listed the property in early October. As interest rates approached 6.25%, many investors began to adopt a “wait and see” approach. In addition to growing market volatility, the property’s age presented a 2nd obstacle. Nearly a century old, there would be a smaller pool of buyers with the expertise necessary to deal with the intricacies of operating a vintage brick building.

Result

Although most investors remained on the sidelines, Kenny generated five offers in one month. Escrow opened in mid-November and closed 45 days later at $7,526,000. The sellers were relieved Kenny’s down market experience helped get the deal to the finish line. Meanwhile, our buyer is pleased to acquire a beautiful vintage property in an excellent location, while providing substantial value-add potential through continued renovations and rent increases.

Speaking for myself and everyone involved, you were absolutely the best broker we could have selected to market our portfolio. You found an incredible buyer and were able to guide us through so many challenges, including a global pandemic, and secured us a price beyond our expectations.

- Seller (60 Units by The Grove)

“I cannot say enough great things about KST. They take care of you, they have the connections needed, and they get the job done! We were amazed at how quickly our sale went through during the COVID pandemic.”

- Seller (4 Units in Beverly Grove)

“It was truly a pleasure working with Kenny. He is professional, honest, hardworking and most importantly did what he said he would. Kenny sold the property at list price in less than 60 days from start to finish.”

- Seller (Beachfront Generational Asset in Playa del Rey)

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