LOS ANGELES—William Holdings has sold a 14-property multifamily portfolio in the Koreatown and Hollywood submarkets of Los Angeles to Laramar for $45 million, GlobeSt.com reports exclusively. The portfolio totals 285 units with 98% to 99% occupancy throughout the portfolio, which helped to generate significant interest and sell above the asking price of $43.5 million.

“William Holdings felt it had the perfect exit strategy, the timing of the market, the peak in values, compression of cap rates, supply of equity, which has driven prices higher then it has ever seen,” Arthur Arejian, president of Vanguard Investments and the exclusive listing agent on the property, tells GlobeSt.com. Over 30 potential buyers looked at the property, and the listing garnered eight offers. The portfolio was originally listed in February of this year.

According to Arejian, the seller chose Laramar both because they offered the best terms and the highest bid in all cash. The terms of the transaction included a quick, 60-day close and short due diligence, and Arejian, who also represented the buyer, said they “performed perfectly.” Laramar was attracted to the property because of they wanted a presence in these Los Angeles submarkets. “This gave them an opportunity to manage and own a 285-unit portfolio in a strong key rental areas in both submarkets,” says Arejian. “They are able to create an economies of scale with renovations, management, and a long term renovation plan to raise rents.” The buyer plans to hold the portfolio for cash flow, and, overtime, will renovate the units and raise the rents.

“This transaction was unique in that an institutional buyer purchased 14 smaller assets in one transaction given the fact that many of the properties were rent control, and some with no parking,” Arejian about the transaction. “I think that given the strong local Hollywood Koreatown submarket trends, and how well these locations have performed with respect to the increase in rents over the last several years is a clear indication that larger equity investors like this buyer are seeking to deploy equity anyway they can even if they have to purchase many smaller buildings to reach their goal.”

The Koreatown and Hollywood submarkets have been getting lots of attention from both investors and developers alike. Recently, for example, the Vermont apartment complex in Koreatown traded hands for $283 million in what was hailed the largest multifamily transaction of the year. “It's really a supply and demand issue,” says Arejian. “It's hard to control 285 units in a tight market like Hollywood and Korea Town, and with rental trends still looking like they are going to increase in the coming years, controlling value-added inventory in these type of B markets will continue to be favorable for equity who believe in the growth and desire a decent yield on their investment.”