Lee & Associates-LA North/Ventura Transacts 76-Unit Multifamily Sale for $12,560,000
Vintage Art Deco building located in the booming Koreatown submarket of Los Angeles
LOS ANGELES – Mar. 1, 2019 — Western Arms, a vintage 76-unit multifamily property in the heart of the Koreatown submarket of Los Angeles, has traded for $12,560,000, according to Cole Martens and Cory Stehr, principals of Lee & Associates-LA North/Ventura who represented the buyer and seller in the transaction.
The rent-controlled property, at 1057 S. Western Ave., attracted a handful of offers from both institutional buyers and family offices before selling to 1057 S Western LLC, a private buyer.
“All the new multifamily development underway in Koreatown has raised the threshold for rental rates and made this building among the most affordable in the area,” said Martens. “And our experience tells us there is strong demand for studio and one-bedroom units, especially among younger tenants who are prioritizing an active lifestyle over expensive, luxury apartments.”
Located in walking distance of the Western/Wilshire Metro stop and many trendy new restaurants and bars, Western Arms sits in the midst of a development explosion with a reported 52 new construction projects representing thousands of new apartment units underway. Average rental rates for the new luxury buildings can range from $2,500 to $4,500 per month.
Western Arms, a brick building built with many art deco features of the time in 1926 as a hotel, is comprised of one-bedroom and studio units that are especially appealing to millennials on a budget.
“The location alone midway between Century City and downtown Los Angeles, makes this property a magnet for millennials, and the new owners plan to introduce tech and service amenities geared to enhance that appeal,” said Stehr.
The seller, Prana Growth Fund 1, L.P., an entity of Prana Investments, was also represented by Martens and Stehr when the company acquired Western Arms as part of a three-building, 159-unit portfolio late in 2015.