A private investor paid $14.75 mil for WhitleyHouse, a 100-unit micro unit apartment building in Hollywood. The property, located at 1963 N. Cahuenga Blvd, between Franklin Ave and the 101 Fwy, was sold by an affiliate of privately held real estate investment firm Vista Investment.
Vista acquired the former 1920s property in 2010 in a lender-facilitated sale. The property had been in the early stages of a major renovation that had stalled out during the recent recession and was in a general state of disrepair and neglect. The combination of the building’s location and its original design as a hotel, made it an ideal candidate for a micro-unit property, according to Vista President Jonathan Barach.
“There certainly is a market for these micro-units in high density cities like Manhattan, San Francisco and parts of LA like Hollywood and the Westside,” said Barach. “It allows renters access to well designed, well located apartment buildings at a price point not otherwise available. While not for everyone, the micro-unit concept appeals to a segment of renters, mostly young singles or couples that cannot afford the rent that larger units in the same area command.”
Vista began lease-up in summer 2012 after an extensive renovation. WhitleyHouse’s 100 residential units include 70 micro units, averaging approximately 250 sf, and 30 junior one-bedroom units, which average approximately 500 sf. Each unit features new contemporary kitchens and baths, polished concrete floors, and high end finishes. In addition, the property includes 9k sf of ground floor retail space leased to Pop Physique, Hopewell Workshop, MacPro LA and others.
“Vista created tremendous value in its ability to take a tired asset with great bones and modernize it for the needs of younger renters who are willing to give up space to be in the middle of the action,” added Andrew Kirsh, co-founder of Sklar Kirsh LLP and attorney for Vista Investment Group. “Similar to our other clients who were able to make purchases during the recession, Vista is now seeing the benefits of those transactions by selling in today’s constrained multi-family market in Southern California.”