Bold Partners purchased the properties from an entity controlled by Levine Management Group Inc. The properties were initially developed by Ronald Levine.
Tamarack’s David Kaufman represented the buyer and the seller in the transaction.
“It was desirable because it’s an up-and-coming neighborhood, and the rents were not maxed out,” Kaufman said. He added that rents were about 50% below market value.
The area, he said, has “good access between downtown and the Westside, and it’s not as expensive as Mid-Wilshire or as built up as Mid-Wilshire. There’s still some relative bargains in that neighborhood.”
The portfolio was listed prior to L.A.’s safer-at-home order and before Covid-related changes began to affect the real estate landscape.
Kaufman said the properties, which were listed last year, had a buyer fall through due to the pandemic. The portfolio had received five or six offers “then Covid hit and that all went away,” he added.
Kaufman said the seller still wanted to unload the properties, and the successful buyer was a previous bidder.
The portfolio sold at 94% of its pre-Covid asking price, according to Kaufman.
The buyer is expected to make some upgrades.
“This group is a value-add buyer. Their business plan is to go in and add value through rehab, and in this case, they are planning on adding additional units,” Kaufman said.
The estimated seismic retrofit costs for the portfolio are $1.29 million, according to marketing materials for the property.
The properties bring in $1.35 million of net operating income, according to the materials.
The buildings are located at 1823 St. Andrews Place, 1625 St. Andrews Place, 1201 Magnolia Ave., 2200 6th Ave., 1555 St. Andrews Place, 1546 S. Wilton Place, 1541 S. St. Andrews Place, 1540 S. Gramercy Place, 1522 S. St. Andrews Place, 1510 S. St. Andrews Place and 1414 S. St. Andrews Place.
The buyer received a five-year loan of 65% loan to costs.
For reprint and licensing requests for this article, CLICK HERE.