One of the city’s most celebrated multifamily properties traded hands recently when a high-profile New York-based private investor partnered with a real estate professional to acquire the famous El Royale. Kamran Hakim and Farhad Eshaghpour paid a total of $29.5 million for the celebrity favorite, which they bought from the local family trust that had owned the property for 50 years. It is one of the most iconic residential communities in Los Angeles, and the acquisition deal has stirred up a number of memories regarding one of the Hollywood elite’s properties of choice.
Located at 450 North Rossmore Avenue, the building features 56 luxury units, with an impressive per-rate unit of $527,000. The property offers an expansive overlook with views that include Hancock Park and the nearby Wilshire Country Club. The average apartment is about 1,400 square feet. Forty-six of the units are rent-controlled, while the remaining ten are exempt due to their luxury residence designation. According to Ron Harris, one of the brokers in charge of the transaction, “El Royale is one of the most iconic and celebrated apartment communities in all of Los Angeles County”.
According to the new owner, the asset will be held for an extended period of time. The 1929-built El Royale could start a trend for the investment duo, as the possibility of a rare, marquee portfolio created through a number of similar acquisitions was not denied by the new owners.
According to data from real estate company Marcus & Millichap Real Estate Investment Services, the per-unit rate that El Royale charged its new owners simply blows the average value of a single-unit transaction in Los Angeles County out of the water, outpacing it by almost $400,000. However, the average price has seen a revival during 2012 and figures supplied by Marcus & Millichap show the market’s propensity for mid-range residential property transactions.
Chart courtesy of Marcus and Millichap Real Estate Investment Services marcusmillichap.com
Photo courtesy of elroyaleapartments.com