10 Units | NoHo Arts District | 1031 Exchange Buyer | All Cash
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The LAAA Team of Marcus & Millichap is proud to announce this impressive closing of a very well located multifamily asset at 10800 Hesby St, in the heart of The Noho Arts district. The property is situated on the corner of Hesby and Riverton.
Built in 1963, this 10-Unit, 9,552 square foot property sits on a large 10,799 square foot lot (0.25 acres), and it has a great unit mix of (2) 1-Bed / 1-Bath units, (7) 2-Bed / 1.5-Bath and (1) 3-Bed / 1.5-Bath units, most of them being townhouse style. The property has been well maintained by the previous owner as well as the current owner. It also has secured entry, covered parking, central air and heat, and the Seller has already completed the mandatory seismic retrofitting in March 2021.
The biggest hurdle to get this deal sold was the fact that the rental income of this property was extremely low. Because of this, we almost certainly needed to find an all-cash buyer because it would be tough for a buyer to get a loan with a decent loan-to-value with the property's current income.
With our database of over 10,000 brokers in Los Angeles who have closed a multifamily deal before, we were able to find an outside broker who was representing a 1031 exchange buyer who was willing to pay this price and accept a 3.03% CAP rate from day 1. The exchange buyer gave us a great, all-cash offer that the seller could not refuse. The escrow was smooth even though the building has some deferred maintenance that the buyer will have to take care of after close.
According to Costar, this sale is the 5th lowest CAP rate ever recorded for a multifamily property sale in North Hollywood 91601.
The LAAA Team of Marcus & Millichap is proud to announce this impressive closing of a very well located multifamily asset at 10800 Hesby St, in the heart of The Noho Arts district. The property is situated on the corner of Hesby and Riverton.
Built in 1963, this 10-Unit, 9,552 square foot property sits on a large 10,799 square foot lot (0.25 acres), and it has a great unit mix of (2) 1-Bed / 1-Bath units, (7) 2-Bed / 1.5-Bath and (1) 3-Bed / 1.5-Bath units, most of them being townhouse style. The property has been well maintained by the previous owner as well as the current owner. It also has secured entry, covered parking, central air and heat, and the Seller has already completed the mandatory seismic retrofitting in March 2021.
The biggest hurdle to get this deal sold was the fact that the rental income of this property was extremely low. Because of this, we almost certainly needed to find an all-cash buyer because it would be tough for a buyer to get a loan with a decent loan-to-value with the property's current income.
With our database of over 10,000 brokers in Los Angeles who have closed a multifamily deal before, we were able to find an outside broker who was representing a 1031 exchange buyer who was willing to pay this price and accept a 3.03% CAP rate from day 1. The exchange buyer gave us a great, all-cash offer that the seller could not refuse. The escrow was smooth even though the building has some deferred maintenance that the buyer will have to take care of after close.
