Details & Info
6228, 6234 and 6238 De Longpre Avenue, Los Angeles, CA
Multifamily properties with 61 units in three buildings
Challenge
Client was looking to exit their position in older, under-parked, brick properties in Hollywood. Units had historically high turnover rates and most had month-to-month lease terms. The neighborhood was in transition. The existing loan was complicated by a large defeasance cost and loan assumption fee.
Solution
- Increased lease terms, cash flow and reduced vacancy by using promotions, such as gift cards.
- Leveraged the improved rent roll to renegotiate the loan assumption fee.
- Marketed the properties individually and as a portfolio to garner the best combined price and terms.
- Highlighted the high-quality construction attributes, including thick plaster walls, large diameter plumbing, architectural details, hardwood floors, and stone work, which contributed to investment interest and improved asset performance.
- Created a map to highlight local parking options and public transportation details, expanded on-property bicycle storage and brought attention to the area’s high Walk Score and growing amenities.
Result
- Portfolio of properties under contract in record time for the current market.
- Improved property financials and the selected buyer’s strong balance sheet allowed for the renegotiation of the loan assumption fee.
- Buyer was a local investor who sought expansion in the submarket, was excited about the walkability, and had enthusiasm for the buildings’ features and charm.