HOLLYWOOD, CA – Warren Berzack, National Director of the Lee & Associates Multifamily Advisory Group, has been awarded the investment sale listing for Gramercy Hollywood Apartment Homes, a newly renovated, mid-century modern, multifamily property consisting of 28 units.
“This is a turnkey investment in the prime Hollywood submarket where year-over-year rental growth has exceeded 6 percent for the past three years,” said Berzack. “In addition to the market’s growth, this property offers additional rental upside because seven of the units have not yet been renovated, promising an upside in rents of more than 20 percent.”
Built in 1974, Gramercy Hollywood at 1836 N Gramercy Place near the intersection of Western and Franklyn avenues, was renovated in 2017 and 2018. Common area renovations include resort style pool area, new electrical, air conditioning and plumbing. The 21 renovated units feature recessed lighting, wood-style flooring, kitchens with quartz countertops and subway tile backsplashes and custom-styled bathrooms. There are in-unit washers and dryers. Some units feature balconies and walk-in closets.
The renovated units have been leased at market rates without any concessions, and rents can potentially be increased by more than 20 percent if the remaining seven units are renovated.
“Today’s multifamily pricing is admittedly high, and the potential rental upside of this property can increase the cap rate by more than 100 basis points,” Berzack added. ”Also not to be overlooked is the transformation underway throughout Hollywood with more than $4.8 billion in new development that promises to increase property values throughout the submarket.”
The property is being marketed for $12,995,000.