Case Studies | Bonner Casitas Apartments
Bonner Casitas Apartments
5500 Bonner Avenue | North Hollywood, CA
Sales Price: $7,875,000
Seller: Spiegel Development and Montage Development
Buyer: Eugene Rink
Units: 32
Price per Unit: $246,094
Price per Sq. Ft.: $271.55
Current CAP: 4.29
Current GRM: 13.95
Market CAP: 6.03
Market GRM: 11.11
Year Built: 2007
Lot Size Sq. Ft.: 15,370
Gross Bldg. Sq. Ft.: 29,000
Net Rentable Sq. Ft.: 25,991
Financing: AITD
Loan Originator/Broker: N/A
First Loan Amount: $5,906,250
On Market Date: March 13, 2008
Close of Escrow: August 5, 2008
Seller Strategy | Business Plan
The seller is also the developer of this property. Both companies employ the strategy of constructing a property and selling it upon lease up.
Buyer Strategy | Business Plan
The buyer is a private investor who uses his own management company. He saw great upside potential in Bonner Casitas with its sound location and below-the-market rents.
Process and Outcome
With high construction costs, the seller had equally high expectations. The market posed a challenge at this level. However, the asset possessed excellent selling points, including its brand-new construction and proximity to the Metrolink. With persistence, The Harris Group was able to find a private buyer looking to complete a 1031 Exchange. The seller carried back an all-inclusive trust deed, allowing the transaction to be completed.
Client Quote
"The Harris Group sold my property for $500,000 more than anyone else was even willing to list it for. They know the market, kept us well informed of the marketing campaign, and made the entire process painless. They truly are the best."
David Spiegel, President, Spiegel Development