LOS ANGELES, CA, Jan. 31, 2012 – Charles Dunn Company, one of the largest full-service regional real estate firms in the Western United States, has completed the $17,025,000 sale of a 199-unit multi-family portfolio consisting of four properties in the Mid-Wilshire submarket of Los Angeles. The properties are situated in prime Koreatown locations and are non-rent controlled buildings.
Janet Neman (top right photo) and Bryan Glenn (top left photo) of Charles Dunn Company represented both sides of the transaction.
The buyer was a Los Angeles-based investment company, and the seller was Los Angeles-based 4D Development.
David Pourbaba (middle right photo), CEO of 4D Development, purchased the Mid-Wilshire portfolio as a distressed asset in 2011 from Wells Fargo Bank. Through repositioning of the asset and a change in management, he was able to improve the value of the portfolio and sell it approximately one year later for a substantial profit.
The closing cap rate was 7.16 percent. The Charles Dunn team won the listing over several other large brokerage firms and sold the property for substantially more than what other firms had originally suggested as an asking price.
“We won the listing based on our successful sales track record and knowledge of the local market,” said Neman who marks this as her fourth transaction she has participated in with this portfolio over the past 10 years. “We quickly identified a buyer who owned similar product in the area and put in a strong offer before the portfolio officially hit the market.”
The properties are all renovated 1920s Art Deco architecture buildings and include 97 studio units and 102 one-bedroom units. Following is information on each property:
- 3835 W. 8th Street (bottom left photo) is six stories, was built in 1928, and includes 59 units
- 715 S. St. Andrews Place is four stories, was built in 1927 and includes 43 units
- 324 Catalina Avenue is four stories, was built in 1926 and includes 48 units
- 326 S. Normandie Avenue is five stories, was built in 1930 and includes 49 units
“The Mid-Wilshire multi-family submarket is showing strong rental demand with solid rental rates and the market vacancy factor at around four percent,” said Glenn. “This portfolio offered the buyer a rare opportunity to own vintage properties in great condition that are not subject to rent control.”
Glenn added that at the time of sale, the properties also had a higher than market vacancy factor and offered a repositioning opportunity through aggressive management.
Janet Neman is a senior managing director with Charles Dunn Company and is in the top 10 of the firm’s top producing agents. In 2011 she was chosen by Real Estate Forum magazine as a “Woman of Influence” in the commercial real estate industry.
Contact:Darcie GiacchettoD.G. Communications, Inc.949.278.6224
No comments:
Post a Comment