Sycamore Villas was built in 1987 and consists of two 39-unit twin buildings, about a block east of La Brea Avenue and north of Fountain Avenue. Newport Properties bought the complex in early 2001 and rehabbed more than half of the units. The property includes 30 one-bedroom units, 36 two-bedroom units, and 12 singles, built of wood frame stucco over two levels of parking.
Russell says the new owners plan further upgrades of the property, which was 95% occupied at the time of the sale. The complex includes a spa and a gym, security at the entry, secure underground parking, and views of the Hollywood Hills and Downtown L.A.
The new upgrades will include improvements to lobbies, the addition of a sales office, and cosmetic changes to the property, she says.
Buyers are willing to invest in Hollywood properties, Russell says, because of the demand for better apartments in the market, where the vacancy rate is less than 1.7% and land for new construction "is almost impossible to come by." Only one new apartment project is under construction in the area, she says, and that's not due to be completed for two years.
"The only other product that's being added is some loft conversions, but there is definitely a scarcity of large, conventional apartment buildings," Russell tells GlobeSt.com.
Russell says apartment owners are encouraged to invest in Hollywood because of the amount of money that commercial developers and government agencies have invested there. Among projects recently completed or under way are the Hollywood and Highland shopping and entertainment center, the Metro Rail, The Grove shopping center and others, making Hollywood a more desirable area for renters.
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