Westlake Multifamily Asset Set for Overhaul Following Acquisition
- Jun 28, 2016
Los Angeles–The past few years have undoubtedly represented a resurgence in the amount of attention multifamily assets located in L.A.’s core have received from investors. The latest asset to strike investors’ fancy is William Penn Apartments, a Westlake apartment community that was acquired by Massie Capital, following a successful financing measure. George Smith Partners worked on behalf of the buyer to secure acquisition financing totaling $12.5 million. The sale price stood at $17 million, which Massie Capital paid seller Omninet Capital for the century-old multifamily building.
Located at 2208 W 8th St. in Westlake, the community consists of smaller residential units. The new owner is planning to extensively overhaul the property, with the focus being on leveraging the small units to maintain affordable rent rates, and pivot toward a younger demographic. Originally developed in the 1920s as a hotel, the five-story building features an exposed brick exterior, and proximity to the newly-made-over MacArthur Park.
According to George Smith Partners Principal Shahin Yazdi, the property is currently grossly undervalued. While a comparable asset would normally fetch $1,100-$1,300 in rents, its position in the lower-rated Westlake means that its rents range between $600 and $700. “To date, multifamily owners in this neighborhood have widely avoided capital expenditures, and rents in the area are very low when compared to surrounding neighborhoods.”
Image courtesy of Yardi Matrix