Two multifamily properties with a combined 68 units in Hollywood traded hands in separate deals totaling $23 mil. The properties — Mansfield Terrace and Palms View – were both sold by Omninet. Located west of Highland Ave, the properties are of late 1980s construction and are not subject to City of Los Angeles rent control.
Built in 1988, Mansfield Terrace is located at 1318 N. Mansfield Ave and consists of 32 one-bedroom units surrounding a charming center courtyard and red tiled roof. The property sold for 95% of the list price at approximately $532/sf and $342k/unit. The buyer, a private investor, was drawn to the property’s immediate income potential, with a 5.43% in-place cap rate and a pro forma cap rate of 6.84%.
The other asset, Palms View, was built in 1989 and is located at 1229 N. Mansfield Avenue. The 36-unit building sold for $12 mil and closed quickly with a 1031 exchange buyer at 89% of the list price and a quick 17-day due diligence period. The property traded at a 6.06% in-place cap rate, with a projected 8.13% pro forma return, which provided a clear path to closing the loss-to-lease gap and capturing rental upside.
In May 2023, the City approved the Hollywood Community Plan Update, which paves the way for up to 35,000 new housing units and 29,000 jobs over the next 20 years. The plan emphasizes transit-oriented development, affordable housing, and sustainability, reinforcing Hollywood’s position as one of Los Angeles’ most dynamic submarkets.
Kitty Wallace with Colliers represented the seller in the two transactions. According to Wallace, the sales highlight the confidence investors have in Hollywood’s long-term fundamentals.
“We’ve seen a clear rebound in demand. Asking rents in Hollywood are projected to rise nearly 25% over the next five years,” commented Wallace. “With top-of-market fundamentals and extraordinarily high barriers to entry, investors continue to recognize the value in acquiring quality, well-located assets in Los Angeles neighborhoods poised for significant growth.”
