Steep Competition for WEHO Multifamily

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.