Off-Market Multifamily Sale in West Hollywood Sets Record During Pandemic

Despite the challenges posed by the pandemic, the commercial real estate market in West Hollywood has remained active. In fact, Jordan Asheghian and Tony Azzi of [brokerage firm] recently brokered the largest multifamily sale in the area in 2020. The off-market sale of a 40-unit property located at 1301 N. Havenhurst Dr. closed for $15.5 million, setting a new record for the area in terms of unit count.

The property, which boasts 35,277 square feet and a price per square foot of $440, is a prime example of the type of multifamily asset that is in high demand in West Hollywood. The area is known for its vibrant nightlife, trendy restaurants, and proximity to major employers in the entertainment industry. With a population of just over 36,000, the demand for rental housing in the area is high, making it an attractive market for investors.

The buyer of the property has not been disclosed, but it is clear that they saw the potential in this asset. The cap rate for the sale was 3.36%, indicating that the property is generating strong cash flow. The gross rent multiplier was 17.21x, which is a measure of the property’s value relative to its income. A higher GRM indicates that the property is generating more income relative to its value, which is a positive sign for investors.

The sale was non-contingent, meaning that the buyer did not have to meet any specific conditions in order to close the deal. This is a testament to the strength of the buyer’s financial position and their confidence in the property’s potential. The fact that the sale was off-market also speaks to the strength of the brokers involved. Jordan Asheghian and Tony Azzi were able to identify a buyer who was willing to pay top dollar for the property without having to go through a lengthy marketing process.

Overall, the sale of 1301 N. Havenhurst Dr. is a positive sign for the West Hollywood multifamily market. Despite the challenges posed by the pandemic, investors are still willing to pay top dollar for high-quality assets in the area. With its prime location and strong cash flow, this property is sure to be a valuable addition to any investor’s portfolio.