Tuesday, January 29, 2013

Charles Dunn Company Completes $4.96 Million Sale of Multifamily Property in Los Angeles



1522 South Hayworth Ave.
Los Angeles, CA
  LOS ANGELES, CA – Charles Dunn Company, one of the largest full-service regional real estate firms in the western United States, has completed the $4.96 million sale of a 17-unit multifamily property located near Fairfax Ave. and Pico Blvd. at 1522 S. Hayworth Ave. in Los Angeles.

Albert Shilton and Blake Rogers of Charles Dunn Company represented the sellers, private investors from Los Angeles, as well as the buyer, Los Angeles-based South Hayworth Investments.

The property traded in the off-market transaction for a 4.2 percent cap rate, and at a $228 cost per square foot. The cap rate is the lowest achieved in the 90035 zip code since 2006.

Albert Shilton
The property includes 16, two-bedroom, two-bathroom units and one, one-bedroom/one-bathroom unit. Rents for the two-bedroom units ranged from $1,650-1,825 at the close of escrow. 

The majority of the units are two-story, townhouse-style floor-plans with large balconies and central air conditioning.

“Our client intends to renovate unit interiors and add common area amenities to increase rents,” said Shilton. “The revenue is expected to increase by 20 percent and since the property is not subject to rent control, this increase can be realized relatively quickly.”

Blake Rogers
The property traded in the off-market transaction for a 4.2 percent cap rate, and at a $228 cost per square foot. The cap rate is the lowest achieved in the 90035 zip code since 2006.

“The buyer capitalized on the opportunity to purchase a non-rent controlled asset in a prime area that sees very few transactions,” said Rogers. “While the going-in cap rate is low, the pro forma cap rate approaches 6 percent, which is significantly higher than market.”

Shilton and Rogers specialize in the sale of multifamily properties and land for development within Los Angeles and Orange Counties. In 2012, they closed on transactions totaling approximately $39,000,000 representing over 500 existing and future units.


For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
D.G. Communications, Inc.
949.278.6224


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