11 May Sold 15 Units in Venice
Cornering the Venice Market
Prosser Stevens agent Eric Von Bluecher negotiated this off-market acquisition of 15 units in prime Venice. Classic deals like this are rare these days in the competitive Venice market (notably this was the first commercial grade multi-family asset with over 5 units to trade in Venice so far in 2016). Since the investors have worked with Eric in the past, they trusted that Eric would find them another exceptional opportunity, and he did. The sellers were initially reluctant to sell the asset, but Eric’s persistence paid off and he eventually presented them with an offer that they couldn’t pass up.
This rare 1960’s vintage style property was owned by the seller’s family for over 20 years. While it generated great cash flow, the property had serious deferred maintenance, as well as tenant and management headaches. Thankfully, the investors that Eric brought to the table were well established and had a team in place ready to reposition the property, adding even more value to this incredible asset.
The transaction proved to be very complicated with a number of issues during escrow. However, because of our experienced Multi-family brokerage and transaction management, Eric and team were able to navigate these challenges and make the transaction as smooth as possible for all parties. Ultimately, the sale was a win-win, and both the buyer and seller were very content with the outcome. The seller was very happy that the asset was sold for just over a 3% cap rate, while the buyer was very happy to acquire this amazing value add opportunity in a rapidly booming area of Venice for $302K/unit and $378/sq.ft. After renovations and professional management have been put in to place, the buyer will realize nearly 80% upside in rents in addition to future development opportunity on a large 11,500 sq.ft. corner lot. The property has an excellent unit mix of mostly two bedroom units, ample parking, and it is just steps from Rose Ave, Abbot Kinney, the beach, and the 4th Street Big Blue Bus line with a direct path to Santa Monica Downtown Station which can move the Millennial and Venice clientele further south to Marina del Rey, North to Santa Monica and East to Culver City and Downtown Los Angeles.
Eric specializes in the coastal markets of Los Angeles including Santa Monica, Venice, Marina del Rey, Pacific Palisades and Playa Vista.
Please contact Eric for a complimentary evaluation of your multifamily investments.
Eric M von Bluecher BRE#01926201
Prosser Stevens Real Estate Investments