Case Studies | Franklin Plaza Apartments
Franklin Plaza Apartments
80-Unit Multi-Family Community
7230 Franklin Avenue | Los Angeles, CA
Sales Price: $24,000,000
Seller: RW Selby & Company
Buyer: Prometheus Real Estate Group, Inc.
Units: 80
Price per Unit: $300,000
Price per Sq. Ft.: $341.72
Current CAP: 4.03
Current GRM: 15.06
Market CAP: 6.14
Market GRM: 11.09
Year Built: 1974
Lot Size Sq. Ft.: 36,634
Gross Bldg. Sq. Ft.: 70,233
Net Rentable Sq. Ft.: 62,972
Financing: All Cash
Loan Originator/Broker: N/A
First Loan Amount: N/A
On Market Date: August 13, 2007
Close of Escrow: November 19, 2007
Seller Strategy | Business Plan
The seller had a value-add business plan with a three-to-five year hold period. They completed exterior renovations and common area upgrades and achieved the necessary yields to satisfy their equity partner. In addition, they saw the opportunity to market the asset as a value-add opportunity via an exterior and interior renovation.
Buyer Strategy | Business Plan
The buyer had recently acquired a sizable asset in the Hollywood submarket within one block of the subject property. They wanted to capitalize on the economy of scale, thereby greatly reducing their construction and operational costs. This, combined with the interior renovation vision, made the property an excellent long-term investment.
Process and Outcome
Our process was to find a buyer who would pay a premium to acquire a rare asset in a market that sees very minimal transaction volume. We were successful in identifying the perfect niche buyer.
Client Quote
"The Harris Group performed with experienced precision and confidence. From the initial listing process through close, we were always kept well informed and were given the confidence that they would deliver the best possible offer and keep the buyer focused and on track. The Harris Group did not hesitate to tackle complex issues that arose unexpectedly and as a result the transaction was a success. We recommend THG highly."
Daniel H. Fried, Vice President - Acquisitions/Dispositions, RW Selby & Company