(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
LOS ANGELES-The Marquee Apartments, a 236-unit multifamily asset in the North Hollywood section of L.A., has been put up for sale. The listing price for the property is $29.995 million or $127,097 per unit.
Greg Harris, Kevin Green and Joseph Grabiec of Marcus & Millichap/Institutional Property Advisors are representing the seller, whose identity has not been disclosed.
Located at 12300 Sherman Way, the 294,887-square-foot property includes three two-story buildings. The unit mix is 194 studios, 35 one-bedroom/one-bath units and six two-bedroom/two-bath units. Amenities include a swimming pool and spa, fitness center, barbecue area with gas grills and outdoor seating, and courtyards.
“A savvy investor has the opportunity to acquire a large, institutional-quality multifamily asset in North Hollywood, one of the most rapidly developing urban centers in the San Fernando Valley with a growing population of well-educated young professionals,” said Harris, EVP investments at Marcus & Millichap/IPA, in a prepared statement. “The asset offers luxury living at a discount of approximately 25% to new construction projects in the NoHo Arts District. Green added that the firm is projecting a five-year leveraged return of more than 17%.
Harris also noted that there are 74 unfinished units in the property, and that its value will increase through additional rental upside once the new owner renovates them. In the past three years, the seller has spent more than $4 million on renovations to the asset, which was originally completed in 1965.
“The Marquee offers stylish urban living at a great value compared to its newer competitors in the submarket,” Harris tells GlobeSt.com.
The Marquee is within 2 miles of the wealth of cultural activities that the NoHo Arts District offers, including dozens of theaters, boutiques and restaurants. Additionally, the property provides is located within easy commutes to nearby employment hubs and is near North Hollywood’s growing business district.
“NoHo benefits from its proximity to Burbank, downtown L.A. and Hollywood, which are the strongest employment markets in L.A. County,” Harris continues. “Those areas are at the center of the entertainment, high-tech and media industries, and NoHo is the direct recipient of all of that job growth. Specifically, apartment occupancies in NoHo in the last 12 months have rebounded to 95+%, which has fueled rent growth in the area.”
As GlobeSt.com recently reported, in June Stanford Jones and Philip Saglimbeni of IPA represented the seller of Broadstone at Strawberry Creek, a 264-unit multifamily apartment community in Sacramento. The property was sold to Decron Properties Corp., a Los Angeles-based diversified real estate investment company and real estate investment and development arm of the Nagel Family Trust, and the deal closed in under 40 days. While Decron could not provide further information, a source not involved in the deal put the sales price at around $34.2 million and told GlobeSt.com at the time that the seller was Archon Group.
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