MWest Sells Historic Hollywood Tower

Los Angeles-based investor MWest has sold the historic Hollywood Tower, a 52-unit apartment complex built in 1929. The firm acquired the 52-unit property in 2015 and renovated it while preserving its historical integrity.

Hollywood Tower had a unique renovation. MWest conducted significant research to understand the original design and construction of the property, and that vision drove the renovation. In the end, the property had a balance of high-end vintage finishes and modern features, including modern appliances, Caesarstone countertops, Euro-style cabinetry, marble bath vanities. Residents also had access to a rooftop deck, which was included in the upgrade. The property is located within walking distance to Franklin Village and public transit.

The apartment market in Los Angeles has expanded tremendously since MWest purchased the property in 2015; however, in the last year, the pandemic has put downward pressure on the apartment sector. A recent report from Apartment Guide has found that Los Angeles ranks among the top US cities with the biggest fall in one-bedroom rental rates. Los Angeles are down 18.4%, second only to San Francisco in the nation.

However, other outlets are reporting improving market fundamentals. According to research from Apartment List in February, average rents stood at $1,511 for a one-bedroom apartment and $1,982 for a two-bedroom. While rents have stabilized, they are down 8.3% year-over-year. At the time, Rob Warnock of Apartment List said, “Although rent growth was flat, it’s worth pointing out that this is the first month since February 2020 where rents in L.A. didn’t drop. After a full year of steady declines, it’s possible that the pandemic-driven rent drop has run its course and that next month we’ll see rents in L.A. start to tick back up.”

It is unknown if the apartment performance in the market played a role in MWest’s decision to sell. The investor is an active player with 2.5 million square feet of residential and commercial property across the U.S., including exposure to other Los Angeles properties, like North Hollywood.