Developer MWest Holdings has sold two multifamily properties for a total of more than $64 million.
The Sherman Oaks-based company sold the vintage Park Wilshire, an eight-story, 170-unit multifamily restored property in Westlake, for $38.2 million.
Institutional Property Advisors, a division of Marcus & Millichap, represented the seller, a joint venture between MWest Holdings and BentallGreenOak, in the transaction. The buyer was New York-based Midwood Investment & Development.
“Park Wilshire is one of just a handful of restored Jazz Age-era buildings left in Los Angeles,” IPA Senior Director Joe Grabiec said in a statement. “Over the past few years, prior ownership made significant capital expenditures to renovate the common areas, amenities and 82 units to a high-level, luxury specification.”
Grabiec, Kevin Green and Greg Harris represented the seller and found the buyer.
Green said in a statement that the building was regularly more than 95% occupied.
The property, at 2424 Wilshire Blvd., was built in 1924.
IPA also represented MWest Holdings in 2016 when it purchased the property from Montgomery Partners Inc. for $27.4 million with plans to spend $1 million on renovations.
Montgomery Partners purchased the property in 2007 for $17.5 million.
Nearby, the 101-unit Guardian Arms Apartments in Los Feliz sold for $26.2 million.
The Guardian Arms also has roughly 9,000 square feet of ground-level retail.
Grabiec, Green and Harris represented the seller, a joint venture between MWest Holdings and Pacific Reach. The buyer, ROM Investments, was represented by Berkadia Real Estate Advisors’ Jim Fisher, Robin Ossenbeck and Mike Smith.
“The buyer plans to complete the renovations to all units and common areas keeping with the charm of the asset,” Ossenbeck said in a statement. “The irreplaceable character of this 1930s high-rise building, commanding views of the Hollywood sign and downtown Los Angeles and potential upside in revenues upon renovations make the Guardian Arms and its retail components a solid long-term hold.”
IPA said the area is seeing high renter demand.
“The abundance of high-paying jobs created by entertainment, media and technology companies, including Netflix, HBO and Viacom, strongly supports renter demand in the area,” Grabiec said in a statement.
Netflix Inc., in particular, has gobbled up large amounts of office space in Hollywood in recent years. The group has signed leases for two projects under construction: Kilroy Realty Corp.’s 355,000-square-foot Academy on Vine and Hudson Pacific Properties’ 13-story Epic Hollywood.
Netflix already leases space in Hollywood at Sunset Bronson Studios.
Harris said the Hollywood/Los Feliz area has added 8 million square feet of commercial property space since 2010 and has 1 million square feet of office space in the works.
The Guardian Arms Apartments, at 5217 Hollywood Blvd., was built in 1928. At one point, it was a hotel. Later, it was an apartment building known as the New Hollywood Apartments.
MWest acquired the property in 2013 and renovated the building. It is located three blocks from the Hollywood/Western Metro station.
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