Micro Unit Apartment Building in Hollywood, CA Trades Hands for $14.75 Million

HOLLYWOOD, Calif. - March 14, 2014 - PRLog -- An affiliate of privately held real estate investment firm Vista Investment Group has sold the WhitleyHouse, a 100-unit micro unit apartment building in Hollywood to a private investor for $14,750,00.

         Vista acquired the former 1920s property located at 1963 N. Caheunga Boulevard in 2010 in a lender-facilitated sale. The property had been in the early stages of a major renovation that had stalled out during the recent recession and was in a general state of disrepair and neglect.   The combination of the building’s location and its original design as a hotel, made it an ideal candidate for a micro-unit property, according to Vista President Jonathan Barach.

“There certainly is a market for these micro-units in high density cities like Manhattan, San Francisco and parts of LA like Hollywood and the Westside,” said Barach.  “It allows renters access to well designed, well located apartment buildings at a price point not otherwise unavailable.  While not for everyone, the micro-unit concept appeals to a segment of renters, mostly young singles or couples that cannot afford the rent that larger units in the same area command.”

Vista began lease-up in Summer 2012 after an extensive renovation. WhitleyHouse’s 100 residential units include 70 micro units, averaging approximately 250 square feet, and 30 junior one-bedroom units, which average approximately 500 square feet. Each unit features new contemporary kitchens and baths, polished concrete floors, and high end finishes.  There also is approximately 9,000 square-feet of ground floor retail space leased to Pop Physique, Hopewell Workshop, MacPro LA and others.

At the time of sale, the building was 95 percent occupied.

“Vista created tremendous value in its ability to take a tired asset with great bones and modernize it for the needs of younger renters who are willing to give up space to be in the middle of the action,” added Andrew Kirsh, co-founder of Sklar Kirsh LLP and attorney for Vista Investment Group.   “Similar to our other clients who were able to make purchases during the recession, Vista is now seeing the benefits of those transactions by selling in today’s constrained multi-family market in Southern California.”

The off-market transaction was brokered by Darin Beebower, a partner with Madison Partners.

“Having recently sold several similar apartment buildings nearby, I was familiar with WhitleyHouse and believed that these micro-units were filling an underserved niche in the market,” said Beebower.   “One of my clients was particularly attracted to these micro-units and we submitted an aggressive, unsolicited offer that allowed Vista to exit the investment with great success.”

Sklar Kirsh LLP (www.sklarkirsh.com)  is a Los Angeles-based corporate and real estate transactional law firm founded by attorneys from nationally and internationally recognized law firms who provide top tier legal services in an entrepreneurial, sophisticated and focused manner. The firm counsels institutional and emerging companies, start-ups, family offices and high-net worth individuals regarding legal and business issues that arise at all stages of the business and real estate life cycle, including business planning, mergers and acquisitions, purchase and sale agreements, fund formation, equity and debt financing, development, leasing, corporate governance, tax, executive compensation and employment arrangements, licensing and joint ventures, intellectual property and dispute resolution.