8560 Whitworth was adjacent to Beverly Hills and Carthay Square, 2 exclusive neighborhoods under constant demand by high-income young professionals and families. Built in 1959, the corner lot property featured a VACANT 2-bdrm. unit and VACANT 1-bdrm. unit, and offered approx. 23% rental upside. 8560 Whitworth was offered at $316,667 per unit, $249 per foot, 5.60% CAP and 11.57 GRM on current rents.
About The Property
Stats
Price $2,052,000
Year Built 1959
Current CAP 5.28%
Proforma CAP 6.85%
Price p/ Sq. ft. $269
Price P/ Unit $342,000
Background
8560 Whitworth, a 6-unit complex in Pico-Robertson, just blocks away from Beverly Hills and Carthay Square, presented a unique opportunity with 33% vacancy and significant upside potential. However, there was a major drawback: the property had a substantial amount of deferred maintenance. The beneficiary, who recently inherited the property, was referred to us by a long-time client of Kenny’s, looking to sell and cash out.
Challenge
While the property boasted 2 vacant units ready for rent and an excellent location, the deferred maintenance posed a challenge, especially for an inexperienced investor. The building still had its original 1950s electrical systems, galvanized plumbing instead of copper, and an aging roof over 15 years old. Additionally, several potential buyers struggled to obtain insurance quotes, and the vacant units required significant work to reach market rents.
Result
Despite these challenges, and with most investors cautiously waiting for the November election results, we took immediate action. Our marketing efforts generated over 5,500 views, resulting in approximately 15 offers. We carefully vetted and toured all qualified buyers, fostering a competitive bidding environment that culminated in a round of best-and-final offers. Our motivated seller, ready to move forward, accepted a non-contingent offer from a buyer specifically targeting investments in Pico-Robertson. 60 days later, the property sold for $152,000 above the asking price, securing a successful outcome for all involved.
