Berzack Investment Arranges Trade of Aging Hollywood Asset
- Mar 17, 2016
Los Angeles– The Garfield Apartments in Hollywood recently traded hands for an estimated $5.4 million, at a cap rate of 3.8 percent, in a deal arranged by Lee & Associates – LA North/Ventura multifamily specialty group, Berzack Investment Property Advisors.
Located at 1722 Garfield Place, the 24-unit apartment building was originally built in the 1920s. Its most recent renovation included half of the asset’s units as well as the bathrooms. The seller aimed to raise the building’s value by converting the studio units into one-bedroom, one-bathroom apartments that would allow an uptick in asking rents.
While the original unit mix consisted of 9 studio units, 11 one-bedroom, and 4 two-bedroom units, the new configuration will see 15 one-bedroom apartments and nine two-bedroom units, two of which feature in-unit washer/dryer. The change, combined with the growing appeal of a property of this type has translated in rent growth of approximately 75 percent for the asset.
Lee & Associates Principals Warren Berzack and Stephen Geiger arranged the transaction on behalf of both parties involved. According to a press statement the marketing process resulted in three offers for Garfield Apartments, with the deal being perfected in roughly two weeks.