The property is just west of the Harbor Freeway (I-110), according to broker Seth Polen of Marcus & Millichap, who says the complex might have commanded a higher per unit price if it were located a mile or so away in Gardena, which does not have rent control like in Los Angeles.
The Galaxy Apartments deal and another sale that Polen closed recently illustrate that "there is still something for everyone" in the Los Angeles apartment market, Polen comments.
The Galaxy property closed for a relatively low price per unit, but the other building, a nine-unit complex in the Miracle Mile district at 1143 S. Cochran Ave., sold for $144,000 per unit, or $1.3 million. The Miracle Mile property, built in 1988, previously sold for $810,000, or about $90,000 per unit, in December of 2000. The former owner had renovated most of the units, which now command rents of up to $1,500 per month, compared with $500 per month before the renovations.
Although the rents at the Galaxy property on Rosecrans Avenue are much lower, between $400 to $600 per month, Polen tells GlobeSt.com that the property still has upside potential, even under rent control: strong demand will allow the owner to raise rents some with tenant turnover.
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