Marcus & Millichap Brokers Sale of Apartments in North Hollywood
- May 02, 2011
Los Angeles, Calif. — Marcus & Millichap Real Estate Investment Services brokered the sale of the Morrison Apartments, a three-building, 100-unit apartment portfolio in North Hollywood. The sales price of $13.3 million represents $133,000 per unit and $203 per square foot.
Built in the mid-1980s, the properties encompass 87,559 square feet and are not subject to rent control by the city of Los Angeles.
Ron Harris, executive vice president of investments in the firm’s Los Angeles office, represented the seller, Interstate Equities Corporation (IEC), a Northern California-based fund manager, and the buyer, Peggy Jones, a local private investor.
“This acquisition was an opportunity to acquire three non-rent-controlled properties in the redeveloping North Hollywood (NoHo) Arts District of the San Fernando Valley,” says Harris. “The buyer plans to add value by instituting a renovation program to upgrade the buildings.”
The three properties are a 44-unit building and a 20-unit building on Morrison Street and a 36-unit building on Bakman Avenue, in North Hollywood, 10 miles from downtown Los Angeles. The NoHo Arts District is part of North Hollywood’s recent transformation into an increasingly lively urban setting replete with theaters, art galleries, cafes, boutiques and restaurants.
Between 2007 and 2009, 75 percent of the Morrison Apartments’ units were moderately upgraded. The units feature gas stoves, two-tone color schemes, dishwashers, and vinyl flooring in the kitchen and bathroom. Between the three buildings, the property features two swimming pools, a fitness center, three barbecue areas, two spas, a playground, a sundeck and a 1.33 parking space per-unit ratio.
Bay Apartment Advisors oversees apartment sale in Oakland, Calif.
Oakland, Calif.–Perkins Street Partners LLC has purchased the 35-unit property located at 314 Perkins Street, a block and a half from Lake Merritt. The price breaks down to $133,571 per unit and $142 per square foot, a cap rate of 6.2 percent.
Joel Kelly & Kris Lamont of Bay Apartment Advisors, who represented the buyer, states, “The property fits perfectly into the buyer’s investment picture, because of the location, quality of construction, and potential for upside in rental income. The purchase validates the demand for quality buildings in Adams Point by tenants and investors alike.”
Adams Point is located on the northern side of Lake Merritt, directly adjacent to downtown Oakland’s “uptown district” and the “Grand Lake district” and located near highways, public transportation (Casual Carpool, BART), and shopping and dining options. Kevin Turner of Marcus & Millichap represented the seller, 314 Perkins LLC.