Highland Park, Eagle Rock: The Next Silverlake?

The properties are located in the Highland Park neighborhood of Los Angeles.

LOS ANGELES—Highland Park and Eagle Rock seeing a wave of gentrification similar to Silverlake, and investors are taking note. California Landmark Group has purchased two multifamily properties in the two neighborhoods in a value-add play. These are the investor’s first acquisitions in these markets, but according to Ken Kahan , president of California Landmark Group, this won’t be its last. “Essentially these neighborhoods are emerging and gentrifying markets, and they have been for some time,” Kahan tells GlobeSt.com. “They are in the process, so they are not nearly as gentrified as nearby markets, like Silverlake, but geographically, they are well suited for change. They are very proximate to Downtown Los Angeles and Pasadena and the other urbanized markets that are just beyond Eagle Rock. You are already seeing the change in the coffee houses, restaurants and stores. These is our first purchase there, but it will certainly not be our last.” The investor purchased the two properties in an off-market transaction, but still saw light competition for the deal from other off-market buyers. “We were very aggressive, and bought the properties non-contingent,” says Kahan. “Frankly, I only walked in two of the units in each building before buying. The opportunity was excellent, and the location was great.” The Highland Park property is Highland Cove, a two-story, 28-unit apartment complex located at 200 S. Avenue 59. Originally built in 1963, it features a mix of one- and two-bedroom apartment homes. In Eagle Rock, the investor purchased a 17-unit complex located at 4319 Toland Way. That property features a mix of two- and three-bedroom units, each with washer/dryer hook-ups. “These buildings hadn’t been touched in 40 years, and we bought it from the original developers/owners, who still lived in one of the properties,” adds Kahan. The company’s improvement plan includes upgrading appliance packages, stone countertops, cabinetry, flooring, lighting and fixtures as well as upgrades to the exteriors. Barry Gordon and Justin Forman of Marcus & Millichap represented both the buyer and seller in the transaction.