Hollywood Micro Apartments Tempt Investors
- Oct 19, 2015
Gershwin Apartments is now under the ownership of a venture between Massie Capital and Glenn & Shannon Dellimore, following a $25 million transaction. The buyer worked with commercial real estate investment banking firm George Smith Partners to obtain financing for the purchase. GSP Principal Shahin Yazdi worked on behalf of the buyer to secure $20.9 million in bridge financing.
Located at 5533 Hollywood Blvd in Hollywood on a 0.54-acre lot, the apartment community offers a total of 163 units, as well as a ground floor retail component of 10,500 square feet of space. Originally built in 1927, the five-story brick building operated for decades as The Gershwin Hotel. In 2013, current seller CIM Group redeveloped the property into a multifamily asset. Residents have access to an amenity package that includes a common room, laundry facilities, business center, fitness center, and controlled access.
Units at the property tend to be smaller, efficiency apartments. 105 units feature kitchenettes and an overall micro-living sensibility, leading to an average unit size of about 340 square feet. Micro apartments are a hot new trend on the rapidly urbanizing West Coast, embraced by developers and residents who are looking to capitalize on the rapidly growing population of the major cities here. Escalating rents across the Western markets are driving residents to new opportunities and out-of-the-box properties in the vein of The Gershwin.
According to real estate data provider Yardi Matrix, the average rent paid for a unit at The Gershwin stands at around $1,162.