Marcus & Millichap’s Institutional Property Advisors Brokers $62 Million North Hollywood Multifamily Asset Sale
Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of AVA North Hollywood, a 156-unit multifamily property with 11,000 sq ft of retail space, for $62.1 million. The sale price represents $393,077 per unit. The property is located in the NoHo Arts District of LA, an area experiencing high demand and strong rent growth. Representing the seller, AvalonBay Communities, IPA managed to secure over 20 offers, reflecting investor confidence in the market's recovery and future potential. Built in 2015, AVA North Hollywood offers amenities like a swimming pool, spa, clubroom, and business center. Nearby are major entertainment employers and extensive transportation links.
- Sale of AVA North Hollywood for $62.1 million, representing $393,077 per unit.
- Property located in NoHo Arts District, a high-demand area with strong rent growth.
- Secured over 20 offers, indicating strong investor confidence.
- Built in 2015, the property includes 11,000 sq ft of fully occupied retail space.
- Located near major employers and entertainment industry giants.
- Extensive amenities, including a swimming pool, spa, clubroom, and business center.
- Proximity to transportation links like the North Hollywood metro rail and major freeways.
- Sale might indicate AvalonBay Communities' divestment from this property and potential exit from the market.
- High sale price per unit could deter future investors looking for lower entry points.
- The area may face challenges sustaining current rent growth levels as more properties are developed.
Insights
From a financial standpoint, the sale of AVA North Hollywood at
However, investors should note the broader market trend and demand for multifamily properties which can be cyclical and sensitive to economic conditions. The high number of offers (over 20) points to a high level of competition and interest in this market, which could drive up prices and result in higher returns for early investors but also increased risks for latecomers.
This sale emphasizes a noteworthy trend in the real estate market: investment in multifamily properties located in areas with significant employment opportunities and amenities. The NoHo Arts District is appealing due to its proximity to major entertainment industry employers like Netflix and Walt Disney Studios, which supports ongoing demand for housing.
Additionally, the property’s amenities add to its attractiveness, indicating that high-quality features are becoming a important component in appealing to tenants. The presence of fully occupied ground-floor retail space suggests a well-integrated mixed-use development that can further enhance the property's value and attract long-term residents.
The current trend of urban living, where individuals prefer living close to work and entertainment, is well-reflected in this transaction. Investors should consider these factors as key indicators of future growth and stable returns in similar markets.
“By highlighting the opportunity to invest in a market that is in the early stages of benefiting from increasing demand and strong rent growth, we attracted significant interest,” said Kevin Green, IPA executive managing director investments. “After substantial development in the submarket pre-COVID that was met with positive absorption but muted rent growth, the area is starting to hit its stride.” Green and IPA’s Joseph Grabiec and Gregory Harris represented the seller, AvalonBay Communities Inc., and procured the buyer, Prime Residential. “We garnered over 20 offers on the property during the marketing process,” said Grabiec. “This strong interest reflects the confidence investors have in a market that is not only experiencing a robust recovery but also has a bright future.”
Built in 2015, the property is within walking distance of entertainment, nightlife, and dining along Lankershim Boulevard. The
AVA North Hollywood’s common area amenities include a swimming pool and spa, clubroom, sky deck, leasing office, movement studio, cybercafé, and business center. The property’s ground floor retail space is currently
About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in
About Marcus & Millichap, Inc. (NYSE: MMI)
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout
View source version on businesswire.com: https://www.businesswire.com/news/home/20240604015427/en/
Gina Relva, VP of Public Relations
Gina.Relva@MarcusMillichap.com
Source: Marcus & Millichap
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