Stepp Commercial, a multifamily building brokerage firm, has announced the $5.68 million sale of two fully occupied apartment properties in West Hollywood. The properties are the Sweetzer Apartments, a nine-unit apartment building, and the Rosewood Apartments, an eight-unit apartment building.
Kimberly Stepp of Stepp Commercial represented the seller, Sweetzer Rosewood LP, and Mark Ventre of Stepp Commercial represented the buyer, Metros Capital 2 LLC, in the transactions. Each property sold for $2.84 million, with the Sweetzer Apartments closing at a 2.3% cap rate and a price per unit of $315,000, and the Rosewood Apartments closing at a 2.6% cap rate and a price per unit of $355,000.
“West Hollywood has long been and will remain one of Los Angeles’ most dynamic and popular lifestyle districts,” Stepps said in an announcement of the sale. “The area’s high barriers to entry and low vacancy rates make sourcing quality investment opportunities with significant upside a rare find. These classic, well-maintained West Hollywood properties feature rents well under market and are destined for a major repositioning and improvement program.”
“These two buildings will likely be extremely profitable for the buyer who has a high-end renovation plan and a long-term hold horizon,” Ventre said.
Originally built in 1957, the Sweetzer Apartments are a single building, two-story property located at 561 Sweetzer Ave. The property consists of one three-bedroom, one two-bedroom and seven one-bedroom units. The property offers covered parking and onsite laundry.
Originally built in 1960, the Rosewood Apartments are a single building, two-story property located at 8355 Rosewood Ave. The property consists of four two-bedroom and four one-bedroom units. The property offers underground parking and onsite laundry.
I am uneducated tenant tenant in weho. I thought the buyers have to relocate and pay the tenants all expenses to do so. Preferably in the same area and price they are currently paying. Of course, negotiable but both have to agree. Legally?
Delivering a Super Tanker of charcoal to Metros Capital 2LLC. Enjoy your Karmic journey.
Merry Christmas! You’re being evicted. 🙁
I am reminded of this Chinese proverb: “The best time to contact the West Hollywood Rent Stabilization Department to learn and understand the rights you have as a tenant was 20 years ago. The second best time is now.”
(It seems odd the Chinese had such an early focus on West Hollywood tenant protections, but we shouldn’t allow that mystery to distract us from the wisdom of the message.) 😉
“destined for a major repositioning and improvement program” Lol.
So a combined total of 17 rent stabilized units will find their tenants kicked to the curb, with the buildings either headed to demolition, or “upgraded” just enough to evict the current residents, nice, real nice….
Yes, these buildings stand to be very profitable once high end renovation is coordinated with “Aggressive Management”.