West Hollywood Multifamily Property Commands $10.1 Million
A prime 40-unit multifamily property in the heart of West Hollywood, California, recently changed hands for $10.1 million, marking a meaningful transaction in the current real estate market. The sale, brokered by Newmark, underscores the continued desirability of West Hollywood’s rental market despite broader economic shifts.
Located at 1260 Hayworth Avenue, between sunset and Santa Monica Boulevards, the property boasts a coveted location near the Sunset Strip and a wealth of dining, shopping, and entertainment options. The sale price translates to $252,000 per unit, or $397 per square foot.
The Newmark team, including Senior Managing Director Chris Benton, Managing Director Anthony Muhlstein, Senior Analyst Gabe Munson, and Co-Head of U.S. Capital Markets Kevin Shannon, represented both the seller and the buyer, festival Companies. The transaction highlights Newmark’s expertise in navigating complex real estate deals.
“1260 Hayworth was sold at a compelling value, reflecting the current dynamics of the shifting capital markets environment,” said Muhlstein. “despite these challenges, west Hollywood continues to thrive as a premier rental market, emphasized by its unparalleled location at the epicenter of Los Angeles’ entertainment, nightlife, and employment hubs.”
The property’s rent-controlled status presented a unique prospect for the buyer, leveraging a 1031 exchange for tax advantages. The potential for significant value appreciation through renovations further enhanced the property’s appeal.
“This rent-controlled asset offered a compelling opportunity for our 1031 buyer,” Munson explained. “The property provides significant upside potential through renovations and benefits from its prime location in West Hollywood, a historically low-trade market with many generational owners.”
The sale reflects the ongoing interest in multifamily properties in desirable locations,even amidst market volatility. The strong performance of this West Hollywood asset suggests continued investor confidence in the area’s long-term growth potential.
This transaction underscores the resilience of the West Hollywood real estate market and the ongoing demand for well-located rental properties. The potential for future renovations further contributes to the property’s long-term value proposition.
West Hollywood Real Estate: A High-Demand Market
Today, we have the pleasure of speaking with Danielle Flores, a veteran real estate broker who specializes in the Los Angeles market. Danielle, thanks for joining us today.
Danielle Flores: ItS a pleasure to be here! Thanks for having me.
Senior Editor: We’re discussing a recent sale in West Hollywood – a 40-unit multifamily property on Hayworth Avenue that sold for $10.1 million. That’s quite a price tag. What stood out to you about this particular transaction?
Danielle Flores: A few things, actually. Firstly, the per-unit price of $252,000 is quite high, demonstrating the heightened desirability of West Hollywood properties right now.
Senior Editor: really? You intuitively think about California, maybe even Southern California, has this enormous inventory across most areas?
Danielle Flores: That’s true, but West Hollywood has a unique appeal. Its location,smack dab in the heart of Los Angeles,means it’s at the epicenter of entertainment,nightlife,and employment. Add to that its charming vibe and walkability, and you’ve got a recipe for high demand.
senior Editor: This property was described as rent-controlled. How does that factor into the buyer’s calculations?
Danielle Flores: It’s a complex equation.Rent control can be appealing to buyers seeking stable long-term income, especially in a market with fluctuating housing costs. But it also presents limitations on rent increases, which can affect potential returns.
Senior Editor: The buyer, Festival Companies, reportedly utilized a 1031 exchange. Can you elaborate on the benefits of that strategy?
Danielle Flores: A 1031 exchange allows investors to defer capital gains taxes by reinvesting the proceeds from a property sale into a “like-kind” property. It’s a powerful tool for long-term investors looking to maximize returns while legally minimizing their tax liability.
Senior Editor: In the current economic climate, why would investors see West Hollywood as as a worthwhile risk, despite broader market volatility?
Danielle Flores: Even with market fluctuations, desirable locations tend to remain strong. West Hollywood has consistently proven its resilience. Ther’s high demand from renters, limited inventory, and a strong track record of gratitude. Investors understand these factors and see the long-term value.
Senior Editor: Danielle, this has been incredibly helpful. Thank you for sharing your insights into this segment of the Los Angeles real estate market.
Danielle Flores: My pleasure. It’s always good to discuss the dynamic world of real estate!
