An overseas private investor has purchased an eight-unit apartment building in West Hollywood for $2.4 million. The property is one of only four multifamily properties in West Hollywood at $300,000 per unit.
Dana Brody of Commercial Asset Group, Inc. represented the seller, Los Angeles-based Cran50, LLC, in the transaction. Todd Jones of Rodeo Realty represented the buyer, Kazuyo Odo of Japan.
The garden-style apartment building, which is comprised of six three-bedroom, two-bath units and two two-bedroom, two bath units, is located at 505 N. Alfred St., one block east of La Cienega Boulevard between Beverly Boulevard and Melrose Avenue.
The 10,156-square-foot property was built in 1962 and with significant renovations done to over half the units in the last few years. One three-bedroom unit, which had been occupied by one tenant for over 20 years, will be completely renovated by the new owner.
“This was the second highest price per unit sale for a rent-controlled building in West Hollywood in 2011,” said Brody. “The other two were for properties built in the 1980s.”
The purchase was financed by East West Bank at 65 percent loan-to-value (LTV) and a 5.25 percent interest rate.
“The multifamily market is strong with demand far outweighing supply,” said Brody. “As a result, we’ve been seeing upward pressure on prices and a decline in cap rates."
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