A 32-unit apartment complex in North Hollywood traded hands in a recent 1031 exchange transaction for $6.41 mil, or roughly $200k/unit. The property, “Terraces at Toluca”, was built in 1987 and is located at 10834 Blix St, north of the 134 Fwy and east of Vineland Ave. It was purchased by a local private investor who plans only minor interior upgrades to the property, which has been well maintained.
Terraces, situated on over half an acre and just minutes from the 101 and 134 Freeways, consists entirely of two-bedroom units and has a condominium map in place. Common area amenities include a spa and fitness center. The monthly in-place rents range from $1,500 to nearly $2,000 per unit.
The transaction was brokered by Dean Zander of Hendricks & Partners. Brian Horner of Alcole assisted with the loan assumption process.
According to Zander, “Terraces at Toluca is one of the premier apartment communities in North Hollywood, on the border of Toluca Lake and just minutes from several entertainment company headquarters in nearby Burbank. With all two-bedroom units averaging over 1,000 square feet, excellent amenities and significant recent renovations, the property is well-poised to capitalize on a more demanding tenant profile.”
“The selling price reflects an absolute awareness of today’s underwriting, fundamentals and capital markets”. The buyer recognized a unique opportunity to purchase a mid-sized asset in a market with very low ownership turnover combined with reasonable rental rates in an excellent location. The buyer was well-positioned to capitalize on market conditions, had funds with an accommodator and acted quickly,” Zander added.
