East Hollywood Community Traded in 1031 Exchange
The rapidly gentrifying submarket determined the hefty price per unit and low cap rate.
Los Angeles—Full-service real estate firm Charles Dunn Co. recently announced the completion of a 1031 exchange for an East Hollywood multifamily asset. The $2.3 million transaction was brokered by Charles Dunn Senior Director Bryan Glenn on behalf of the seller, a private L.A. investor, while the 1031 buyer was represented by a Nourmand & Associates team.
Located at 4351 Normal Ave., the 12-unit apartment community is located within an area that’s currently undergoing a substantial gentrification process. According to Glenn, Millennials are targeting updated apartment communities in the East Hollywood submarket. The century-old building features updated interiors and its unit mix consists of four studios, two one-bedroom apartments, and six two-bedroom apartments.
Offering proximity to the Red Line Metro station, as well as the 101 Freeway, 4351 Normal is also within walking distance to the blossoming neighborhoods of Silver Lake and Koreatown. Strengthening fundamentals for the area determined a $200,000 price-per-unit for the community, and the deal closed at a 5.4 percent cap rate.
Image courtesy of Charles Dunn Co.