3701 9th Street (32 Units) and 863 S. St. Andrews Place (Duplex) sold to a well-established LA Apartment Investor.
Two Side-by-Side Properties
We recently closed 3701 9th Street & 863 S. St. Andrews Place: a two-property multifamily sale transaction consisting of a 32-Unit apartment building and an adjacent duplex located in the highly sought-after Koreatown neighborhood of Los Angeles on the corner of 9th Street and St. Andrews Place.
Narrow Pool of Investors
There were a few challenges presented with the marketing of this opportunity. Market dynamics aside, the buyer pool for Brick buildings in Los Angeles is very narrow to begin with. Most of these properties are either approaching (or have surpassed) the 100-year old mark making them prone to expensive Cap Ex repairs and overall difficulty to insure.
The second challenge was selling both of these properties together to one Buyer. The purchasers for the 32-unit brick building wanted nothing to do with the adjacent duplex – and vice versa.
A Well-Established Long Term Buyer
The purchaser, a well-established Los Angeles apartment investor, saw the strategic value of controlling two contiguous assets in a supply-constrained submarket. By acquiring these properties together, the buyer has the opportunity to enhance operational efficiencies and position the both for both steady income and future growth.
The Final Closing Metrics
– $4,270,000 Total Sale Price
– $125,588 Blended Price per Unit
– $140 Blended Price per SF
– 8.6x Blended GRM
Please contact Everett Wong for further details on this transaction.