DEAL OF THE DAY: M West Makes History in Los Angeles

Los Angeles — The Wilshire Royale, one of Los Angeles’ best-known historic apartment buildings, has been sold to M West Holdings for $32.5 million. Institutional Property Advisors (IPA),  facilitated the sale of the 193-unit property, which dates back to the 1920s.

“The Wilshire Royale Apartment building is an iconic Los Angeles landmark and reflects our company’s vision to acquire properties in emerging neighborhoods with powerful and distinct personality,” said Karl Slovin, president of M West Holdings. “With the Wilshire Royale we intend to bring back the 1920s neoclassical charm and elegance so we can attract the growing millennial renter population that is looking for a modern amenity package that rivals the best buildings in the area.”

The 12-story Art Deco-style building was originally constructed in 1927 as the Arcady Apartment Hotel, a deluxe and full-service live-in hotel with 9,269 square feet of ground-floor retail space. Since then, it has operated as a retirement home and a Howard Johnson’s hotel until it was eventually converted back to apartments. The buyer plans to spend about $2 million over the next year upgrading the building’s units, lobby and other common areas, as well as repairing and relighting the trademark “Wilshire Royale” sign on the roof.

“Located between Koreatown and downtown, this is an area that is starting to see a tremendous amount of capital moving into it with several high rises and office-to-apartment conversions planned, along with East Coast investors trading into Los Angeles in an effort to find value,” said IPA director Kevin Green. “Of late, it has become a trendier spot as Koreatown continues to push the boundaries to the east and downtown Los Angeles moves west.”

The Wilshire Royale’s prime location offers easy access to the 10, 101 and 110 freeways and a short commute to downtown Los Angeles, Hollywood and the Westside, as well as close proximity to stops on the Metro Red Line and Purple Line.