A 78-unit apartment building in Hancock Park has sold for $29 million to a coliving developer.
Kevin Green, Joseph Grabiec, Tyler Leeson and Greg Harris, brokers with Marcus & Millichap Inc. unit Institutional Property Advisors, represented the seller, a private family in Orange County. IPA also found the buyer, a joint venture between Domos Coliving and ESI Ventures. The building is located at 410 N. Rossmore Ave.
“Hancock Park is one of the city’s most prestigious neighborhoods,” Grabiec said in a statement. “The median home price there is close to $2 million, which creates a large affordability gap between home ownership and renting that drives demand for luxury rental housing.”
Green added that only three apartment buildings in Hancock Park with 50 or more units have sold in the past five years, making this an “extremely rare sale and an even more rare investment opportunity. Never renovated and under the same ownership for over 40 years, the building delivered a one-of-a-kind investment.”
The building was 75% leased at the time of the sale, according to CoStar Group Inc.
Daniel Alexander, a principal at Domos, said the group would first make changes for safety reasons before creating coliving units Domos will perform a seismic upgrade, make the building ADA accessible and add an elevator to “address life-safety issues.”
“Once that is done, we are going to do some very high-quality renovations to the property,” Alexander said.
He added that it was too soon to know the details of the coliving community Domos will create but that the company will keep historic elements of the property, which was built in 1930.
Domos is developing coliving units around the country. The company’s units include private bedrooms and communal areas that may feature shared kitchens, living rooms and bathrooms.
“We offer the highest quality living experience possible in a shared living environment,” Alexander said. “It’s our direct response to the affordability crisis in our nation.”
Coliving developments are becoming more common. In 2019, there were more than 3,700 units available with 9,300 units in the pipeline nationally, according to a report from Cushman & Wakefield Inc.
The units are generally cheaper for renters than other housing options, have more amenities and offer flexible lease terms.
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