LOS ANGELES—An unnamed investor has purchased Linda May Manor, a 32-unit apartment complex in the Miracle Mile neighborhood of Los Angeles from a 17-member family. The apartment complex has no parking and is made up of 75% studio apartments, but still drew 10 unsolicited offers in an off-market transaction, illustrating the tight Miracle Mile market.

“Miracle Mile is so dynamic because a lot of the buildings are pre-war and the architecture is a lot more attractive, especially than later vintage buildings,” Rich Johns, leading apartment advisor with KW Commercial, tells GlobeSt.com. “The resident demographic is strong. There aren't a lot of buildings that trade hands, and investors will do anything that they can in this market. Miracle Mile is very tight. Once investors own there, they don't ever trade.” Rich represented both the seller and the buyer in the transaction.

The seller is a perfect example of the long-term investor that typically owns property in this market. The family had owned the property for 40 years, and only decided to sell after the matriarch of the family passed away, leaving it split between 17 family members. Because of the complicated ownership, they decided the best thing to do was to sell the property.

Although the property received 10 unsolicited offers, none of the buyers were able to perform and follow through with the sale. “The sellers hadn't been vetted properly. They didn't have the resources and weren't prepared to perform and close escrow,” says Johns. The sellers then turned to Johns, who had a buyer in mind. “My buyer had a slightly lower price, but he was able to perform,” he adds. In the end, the property traded hands for $5.7 million, or nearly $180,000 per door.

Located at 456 South Cochran Ave., the four-story brick property is 100% occupied. Although it had been under the same ownership for years, the property had been well maintained. However, Johns says that the buyer does plan to invest additional capital into the property to enhance the value wherever possible. He did not know how much the buyer plans to invest or the improvement plans for the property.

Last month, a private investor purchased a 71-unit value-add apartment building in the Miracle Mile neighborhood for $23.5 million. The property had recently undergone an extensive $2 million capital improvement program, but had traded hands two years earlier for $14.6 million, which illustrates the rising values in this neighborhood. This property was a fully marketed transaction, and while the brokers didn't comment on the number of offers they received, they did say they received tremendous interest in the sale.