Buyer Universe Holdings to renovate nearly century-old multifamily property to tune of $1 million, could be kick-starter for Westlake gentrification
LOS ANGELES – Sept. 21, 2017 – In another in a series of recent transactions demonstrating the unyielding strength of Southern California’s multifamily investment market, a team from Colliers International has completed negotiations on the $12.6 million sale of Nob Hill Towers, one of the original Art Deco-themed apartment buildings constructed in the early 20th century near downtown Los Angeles, officials reported.
Built in 1929 at the zenith of the Art Deco, or Style Moderne, movement, this landmark property is favorably positioned in the densely populated and rapidly gentrifying Westlake neighborhood, about a mile west of the downtown Financial District.
Executive Vice President Kitty Wallace and her team represented both parties to the transaction—buyer Universe Holdings and seller Dobson Meadows Partnership, both based in Los Angeles.
Comprised of 52 units on a 14,000-square-foot lot, the towers are a block from MacArthur Park and within walking distance of a variety of retail centers, mass transit options like the Westlake/MacArthur Park Metro Station, numerous bus stops, and an array of entertainment venues including downtown’s famed L.A. Live complex anchored by Staples Center.
Located at 2430 Ocean View Ave., the property sits on a hilltop with sweeping views of the Hollywood sign, the Griffith Park Observatory, parts of downtown Los Angeles and, on a clear day, the Pacific Ocean, some 15 miles distant. In fact, so centrally located is the property that it was ranked the fourth “most walkable neighborhood” in Los Angeles County by Walk Score with a score of 91. Any score above 90 means daily errands can be completed on foot, no vehicle required.
“Sandwiched between booming downtown LA and Koreatown near the Wilshire Corridor, Westlake is experiencing the spillover effects of gentrification,” Wallace said. “The neighborhood’s affordable livability, proximity to major employment centers and well-facilitated transit options are beckoning residents to live beyond the borders of downtown, where rents have continued to skyrocket.”
Westlake is the second-most densely populated neighborhood in Los Angeles County with some 38,214 residents per square mile, according to the U.S. Census Bureau.
“Nowhere has the strength of the multifamily investment market been more evident than in downtown Los Angeles and its environs, particularly in the Westlake neighborhood,” said Wallace. “With the buyer pledging nearly a million dollars to renovate and restore this grand property, it should telegraph to everyone that demand is continuing to outstrip the supply of investment-grade, multifamily properties.”
New owner Universe Holdings will upgrade the interiors with new flooring, appliances, counters, cabinets and other improvements. Exterior renovations will include dramatic new lighting, paint, and enhanced common areas and landscaping. The basement will be converted to a business center and fitness area.
“Nob Hill Towers was a terrific investment opportunity in a vibrant community rich with employment, transit, points of interest and other amenities,” added Wallace. “The forthcoming renovations will only strengthen the value of the asset, which already has been bolstered by the neighborhood’s historically low vacancy rates and a wave of gentrification currently sweeping the entire city.”
About Colliers International Group
Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry-leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
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