One of the properties, the Selworth Apartments, is a 34-unit building constructed in 1957 at 7941 Selma Ave., on the border of West Hollywood. A family member of the original developer sold the property to Veritas Investments Inc. for $13.6 million.
“The buyer in this transaction has a focus primarily on well-located assets with little to no improvements, allowing them a blank canvas to implement their value-add strategy,” Goldstein said in a statement.
According to Goldstein, Selworth Apartments is the only property with more than 20 units to have sold in the immediate area in the last two decades.
“Well-located assets with a good ‘story’ have continued to trade throughout the 2020 pandemic as investors are flocking to stabilized markets to ensure downside protection,” he said. “This bodes well for our business model as middle-market experts with an emphasis on premier submarkets throughout Los Angeles County.”
The second site to sell is at 950 S. St. Andrews Place in Koreatown. Montgomery Partners Inc. sold the 28-unit property, which was built in 1964, to an individual for $6.9 million.
“The seller has strategically been repatriating capital to other markets outside of Los Angeles, and the sale of 950 S. St. Andrews Place afforded the seller the opportunity to once again capitalize on this strategy,” Schellinger said in a statement.
In a press release, NorthMarq added that investors are looking at properties where higher or similar rents can be achieved if residents move out.
“If an investor is comfortable with the going-in yield, and comfortable with their lender’s interest reserve requirements, once they are able (to) ascertain that current collections will either hold or improve should any of the existing tenants vacate, we’re quite confident that we’ll facilitate the sale. Both 7941 Selma and 950 S. St. Andrews Place are great examples of that,” Schellinger said in a statement.
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