LOS ANGELES-The sale a of 30-unit apartment complex on 1203 North Kings Road in West Hollywood saw aggressive competition from potential buyers. The property received 39 offers in the 45-day period it was on the market. Private investor May Ling eventually won the bidding war, paying $855,000 above the original asking price.

"This property sits in one of the worst rent-control cities, but that is the risk the buyer is taking, which is to reposition units in the future and slowly take rents to a different market level," Arthur H. Arejian, president of Vanguard Investment Inc., tells GlobeSt.com. Arejian represented the seller in the transaction, a private investor who has owned the property since it was originally built in 1967. The property sold at a 3.5 cap rate and at a relatively high-price per unit, but at $250 per square foot. "Many people think the buyer overpaid, but in my opinion she didn't because she got a great cost per square foot," says Arejian. The final sale price was $9.45 million with an original asking price of just under $8.6 million.

The 3-story property has studio, one- and two-bedroom units ranging in size from 620 square feet to 1,820 square feet, and features common areas and amenities, like a pool, fitness center and on-site parking. "This property is in a phenomenal location, and had all the attributes that everyone was looking for. That is why it sold so aggressively." Arejian says, adding, however, that the property has been "somewhat neglected" and has a strong value-add component. The buyer plans to make capital improvements slowly as units become vacant, but will do common area and exterior work sooner.