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| 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.
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| 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.”
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| 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
