The Mogharebi Group brokers sale of 30-unit apartment community in Los Angeles

Gramercy Townhouse
The Mogharebi Group (TMG) announced the $7.15 million sale of 30-unit Gramercy Townhouse in Los Angeles.

Despite current market conditions, deals have still been transacting—especially on small- to mid-cap multifamily assets in Los Angeles. The $7.15 million sale of 30-unit Gramercy Townhouse in the booming Koreatown neighborhood is yet another indication of this trend, according to Vice President Keon Truth of The Mogharebi Group (TMG), who represented the sellers in the transaction.

Truth specializes in the Los Angeles multifamily market and plays a key role in TMG’s prominence in the region. “Even with uncertainty in the capital markets, deals are still happening, and we are procuring multiple offers from a wide variety of investors who seek the protection that multifamily assets offer,” said Truth.

Located at 430 S. Gramercy Place, Gramercy Townhouse is a three-story apartment building with a mix of studio, one-, and two-bedroom units. A major draw of the property is its highly walkable location just 10 minutes from the Wilshire/Western Station of the Metro D (Purple) Line, which is currently being extended from Koreatown to Westwood with planned stops in Beverly Hills and Century City.

The sellers, a private family based in Los Angeles, held the property long term and were ready to reposition their holdings into more passive investment avenues. Like many active owners this year, they faced the impending Measure ULA tax. The Measure, which went into effect on April 1, 2023, established a 4.0 percent tax on the transfer of real estate valuing more than $5 million. Had the sellers not completed the transaction beforehand, it would have been subject to the new tax.

“Once in escrow, we were able to close in 22 days to meet our clients’ deadline,” said Truth. “We structured a deal that achieved their investment objectives despite shifting buyer sentiment and the uncertain lending environment.”

Meanwhile, the buyer was a local family office that strategically acquired a prime asset that hadn’t touched the market in decades and will, in turn, capture tremendous value-add upside.

In just the last two months, The Mogharebi Group has been instrumental in arranging the sales of four other small- to mid-cap multifamily properties in Los Angeles. These transactions included closing on 28 units in Boyle Heights for $6.5 million (represented by Mike Marcu and Otto Ozen) and 27 units near Hollywood for $7.2 million (represented by Mike Marcu and Nazli Santana). The market has shown that buyers who might typically invest in large deals are increasingly turning to smaller multifamily assets given the uncertain conditions and increased cost of capital.