Two multifamily properties in West Hollywood recently sold for nearly $30 million. Together, the properties have 72 units.
Benedict Canyon Equities, a Century City-based multifamily investment firm, purchased the properties at 884 and 939 Palm Ave.
Calabasas-based brokerage Marcus & Millichap’s Tony Azzi and Rabbie Banafsheha of The Azzi Group represented the seller, a private family investor. Azzi, Banafsheha, Arteen Zahiri and Ian Habbestad of The Azzi Group represented the buyer. Jake Vitta, Brian Eisendrath and Cameron Chalfant of IPA Capital Markets, meanwhile, arranged acquisition financing for the buyer.
“West Hollywood consistently experiences high tenant demand driven by limited housing supply, walkability, and access to major employment hubs throughout the Westside and Hollywood,” Azzi said in a statement. “Opportunities to acquire 72 units on Palm Avenue in a single transaction are exceptionally rare and these are irreplaceable assets in a market where new supply is effectively constrained.”
The buildings are located near the Sunset Strip, Santa Monica Boulevard and the Pacific Design Center.
‘Compelling value-add opportunity’
Banafsheha added that the properties had a lot of long-term upside. Built in 1990, 939 Palm Ave. is a four-story building with 42 units. Meanwhile, 884 Palm Ave. was built in 1989 and is a three-story building with 30 units.
Both have parking, fitness centers, swimming pools, spas and private decks.
“The properties are generational-quality assets that require significant renovation, creating a compelling value-add opportunity for a proven operator like Benedict Canyon Equities. Palm Avenue is widely regarded as one of the premier streets in West Hollywood, further enhancing the long-term value and appeal of the properties,” Banafsheha said in a statement.
The properties are the biggest multifamily sales by dollar value in West Hollywood so far this year, according to data from CoStar Group Inc. Smaller sales in the area include 733 Huntley Drive, which traded hands in October for $3.4 million; 939 Larrabee St., which sold for $2.8 million in September; and 1266 N. Flores St., which also sold in September for $1.7 million.
In the last year, units in the area were 94% occupied, according to CoStar data and no new units were delivered last quarter. Asking rents are currently more than $3,800 per unit on average.
