Multifamily Asset Trades Hands for Price that’s Smaller than You Think
As rents rise and vacancies compress in the city’s core, investors are rushing to place capital on the market as quickly as possible.
By Alex Girda, Associate Editor
As rents rise and vacancies compress in the city’s core, investors are rushing to place capital on the market as quickly as possible. Westlake Village, CA-based BR Workforce recently completed the purchase of a multifamily property on Washington Boulevard. The company paid seller Dornin Investment LLC of Laguna Beach a total of $13.1 million for the community known as The Kelsey. The transaction was arranged by Berkadia Managing Director Brent Sprenkle.
The Kelsey is located at 1408 West Washington Blvd, offering easy access to Interstate Routes 10 and 110. The multifamily asset also offers proximity to DTLA, as well as the Walt Disney Concert Hall, while major employers in the area include University of Southern California, USC Medical Center and Kaiser Permanente. Completed in 2012, The Kelsey offers 41 residential units featuring high ceilings, granite countertops and stainless steel appliances. The resident amenity package at the property is comprised of a recreation and entertainment room, as well as two levels of secured subterranean parking.
Although trading at a per-unit price of around $320,000, the asset is considered a strong investment opportunity given the current makeup of the Long Angeles West area. According to Brent Sprenkle, the market “has experienced healthy job growth and increased apartment demand over the last year, further enhancing the asset’s appeal.”
Although much higher than the average per-unit price in the Los Angeles metro, increased activity in the area and the asset’s age should translate to a slightly higher price. Sprenkle also noted that that this situation “presented the buyer with a particularly attractive investment opportunity.”