Los Feliz Apartment Building Sells For $64.3M In 'Competitive Bidding Environment'
A 134-unit Los Feliz apartment building sold for $64.3M, or $479,871 per unit, a price that puts the transaction well above the average for the Los Angeles metro area, indicating the level of demand present in the market.
“The Los Angeles metro area is experiencing historically strong multifamily metrics this year, including sub-2% vacancy,” Institutional Property Advisors Executive Director Kevin Green said in a statement. Green, along with IPA’s Joseph Grabiec and Greg Harris represented the seller, an undisclosed private multifamily investment firm.
The LA metro’s average per-unit price point in the second quarter of this year rose 7% to $310K. The average effective rent across the metro rose an average of 17.3%, to $2,629, according to Marcus & Millichap.
The complex, called Vue Los Feliz, was built in 1988, according to property records. The building has studio, one- and two-bedroom units with hardwood floors, dining rooms and walk-in closets. Communal amenities include an indoor saltwater swimming pool, spa and rooftop deck. A studio at the property rents for $2,700 and one-bedrooms start at $3,100, according to listings on Apartments.com.
Post-1980 assets are popular with investors in Los Angeles, Santa Monica and West Hollywood because they are not subject to the rent stabilization restrictions in those cities, according to Marcus & Millichap. The firm noted it has seen a "competitive bidding environment" emerging for these properties.
The buyer was Phoenix-based Alliance Residential Co. Late last year, Alliance sold a 103-unit Hancock Park complex to Fairfield Residential for $60.1M and sold a Laguna Niguel complex it built for $545K per unit. The Orange County transaction was the second-largest per-unit price of any transaction that year, according to Kidder Mathews.