Mini-Case Study #2: 827 E Edgeware Road 90026 - Purchase of a Fourplex in the Up-And-Coming Downtown Los Angeles-Adjacent Neighborhood of Angelino Heights

Adner Realty Group is pleased to announce the closing of 827 E Edgeware Road, a fourplex in the Angelino Heights neighborhood of Echo Park, in the shadow of Downtown Los Angeles.

The sale closed on April 11, 2013 with a list price of $890,000 and a final contract price of $970,000.  Adner Realty Group represented the Buyer.

The building is comprised of four 1 bedroom, 1 bath units, each measuring approximate 1,000 sq ft.  The lot is 4,064 sq ft.  There is no on-site parking.

Two units were delivered vacant.  Two units had legacy tenants with rents approximately 30% below market.  Total monthly income is estimated at $87,000/year or 11.1 GRM.  (Income and expense information was not available at the time of sale to determine the cap rate.) 

Fully occupied, rents average approximately $1.79/sq ft/month.

A few takeaways from this sale:

1. Location, location, location - We are bullish on Angelino Heights / Echo Park, and we think that the housing stock of period buildings, proximity to Downtown Los Angeles, and high quality tenants who gravitate here make this neighborhood one of our top three target areas for investment in Los Angeles.
2. The multifamily market is highly competitive - and Buyers who desire quality properties must bid aggressively to get them.  Our client went nearly 10% above the asking price to acquire this prime asset.
3. Expect multiple offers when submitting offers - in this competitive market, lowball offers are dead in the water.  (This property received multiple offers the first day it was on the market.) Calibrate your bid to where you think the market is, and don't hesitate to offer above the asking price.
4. Your agent is your key to sealing the deal - The value of your agent is their ability to uncover quality properties, analyze and interpret market signs, negotiate your deal, and ultimately vanquish competitors.   Choose your agent wisely.

---------------------------------------------------------------------------
Thinking of buying or selling an apartment building?
Have a question about the multifamily market?
Please call us at (310) 845-6810 or email us by clicking on this link.
We'd love to hear from you.
---------------------------------------------------------------------------

Mini-Case Study #1: 581 N Windsor Boulevard 90004 - Sale of a Pristine, Upgraded Fourplex with Market Rents near Larchmont Village

A classic Fourplex in the classy Larchmont neighborhood

Most of Adner Realty Group's business is selling multifamily properties in Los Angeles.  We are proud to be a Commercial Director at Keller Williams Hollywood Hills, and thought we share some of our sales to illustrate trends in the Los Angeles apartment building market.

Adner Realty Group listed this fourplex in Larchmont, 581 N Windsor Boulevard 9004, in February 2012, just as the apartment building market was emerging from four years in the doldrums, with a sale price of $1,375,000.

The building was fully upgraded by its current owners with four new kitchens, all new electrical panels, wiring and fixtures, seismic retrofitting, and numerous other upgrades.

The four one bedroom, one bathroom units each measured over 1,000 sq ft and looked pristine with hardwood floors and fresh paint.  (The property has 4,116 sq ft of living area, a 5,097 sq ft lot, three garage spaces and one storage shed.)

The rents were all near market rate, and averaged $1,936 per unit, or $1.88/sq ft/month.

What Tenants Seek: Large, light, bright units with Hardwood Floors

The building was in contract in 67 days, and ultimately closed in May 2012 for $1,325,000 with no concessions.

581 N Windsor Boulevard sold at a 14.3 GRM and a 5.6% cap rate.

A few takeaways from this sale are:

1. Location, location, location - this building attracted a lot of interest because of its "sweet" location near Larchmont Village; 
2. A superiorly maintained building with great curb appeal will net a superior price; 
3. Investors gravitated to the building because it was "turnkey" with upgraded systems, no deferred maintenance and market rents; 
4. Lack of similar properties in this desirable area intensified buyer interest.

In the ten months since this sale, the market has strengthened considerably.  If put on the market today, we're pretty sure it would sell in fewer than 67 days.

---------------------------------------------------------------------------
Thinking of buying or selling an apartment building?
Have a question about the multifamily market?
Please call us at (310) 845-6810 or email us by clicking on this link.
We'd love to hear from you.
---------------------------------------------------------------------------

Just Reduced to $405,000: 4257 Fountain Avenue, Duplex near Trendy Sunset Junction

Craftsman Duplex for Sale just off Sunset Boulevard in Silver Lake

Adner Realty Group is pleased to announce we have a price reduction on our listing, 4257 Fountain Avenue, Los Angeles 90029, a Craftsman duplex in the trendy Silver Lake neighborhood.

New price is $405,000, yielding a 5.1% cap and 13.5 GRM on actual rents of $1,295 and $1,208. 

This building is located a short distance from the retail and restaurants on Sunset Boulevard and Hyperion Avenue and even the Vista, the movie theater with the most legroom in Los Angeles.

Hardwood Floors and Period Detail

The two 1 bedroom and 1 bath units total 1,152 sq ft.  The property sits on an 1,800 sq ft lot.

Upgrades include new electrical panel and tankless water heaters

Improvements made in 2008-2009 include two new electrical sub panels, two new tankless water heaters, two new ranges, two new dishwashers, one new refrigerator, two new washer-dryers and some new copper plumbing. 

Kitchens have washer dryers, built-in, 2009 appliances

The property's location, strong rental demand, and low expenses will benefit both owner-occupants and investors.

Bedroom with Hardwood Floors

This is an excellent opportunity to purchase a building with strong rents and low expenses near four of the hottest Greater Los Angeles area sub-markets -- Silver Lake, Los Feliz, Hollywood and Echo Park.

****************************************************************************
Adner Realty Group is a "market maker" in the Los Angeles multifamily business. If you would like a marketing brochure about the 4257 Fountain Avenue or information on other income properties, please call us at (310) 845-6810 or email us by clicking on this link.
 ****************************************************************************