The Bedford Apartments, a multifamily land redevelopment property, located at 1442-1446 S. Bedford Street in Los Angeles, California, has been purchased by Trion Properties, Inc., a large real estate investment company, for $5,200,000. The sale price was above the market at $400 per square foot and about $179,310 per buildable unit. The seller was a private investor. Kidder Mathews’ multifamily investment broker, Michael Monempour, represented both parties in the transaction.
The Bedford Apartments consists of two buildings located in the highly desirable Pico Robertson neighborhood. The assets were vacant at the time of sale, so there wasn’t a need for replacement or cash for keys buyouts, and the buyer was able to avoid SB 330 restrictions. It is a double lot and was purchased for the land value with plans for a 29-unit multifamily redevelopment.
The property is zoned Tier 3 Transit Oriented Community (TOC), which allows for a 70 percent bonus in density and an additional 22 feet height limit. The TOC Incentive Program encourages the construction of affordable housing near bus and train stations. The property is just south of Beverly Hills, east of West Los Angeles, and borders Culver City. It is near the soon-to-open train station on La Cienega and Wilshire Boulevards.
Trion Properties has over 100 multifamily units in development within a half-mile radius of the Bedford property. They are close to completion on a 45-unit project a half-mile east on Hi Point Street and have a second project on Hi Point Street set to complete next year. The Bedford property is considered a more desirable location, the rental market is ideal, and it contains a favorable tenant profile. Its proximity to the other projects allows Trion Properties to save on construction costs via economies of scale.
“The market is growing in front of our eyes. This property is in a top seven neighborhood in Los Angeles with so much potential upside,” said Monempour. “There is an increased demand for development opportunities located in prime areas that are eligible for TOC. The land values have gone up because developers are incentivized with TOC. It makes for an optimal development site and maximizes the efficiency by increasing density and square footage. The sellers benefit as well because the properties’ highest and best use become the land value,” he said.