Engine Real Estate buys Garfield Apartments in Hollywood for $5.5M

Los Angeles /
Mar.March 14, 2016 04:30 PM

The Garfield Apartments, a 24-unit complex at 1722 Garfield Place in Hollywood, sold last month for $5.45 million with a cap rate of 3.8 percent, The Real Deal has learned. The buyer, Arts District-based Engine Real Estate, helmed by Jeffrey Birkmeyer and David Walker, plans to reconfigure the apartments in the 1920s era building.

The sellers —  Kumar Koneru and Positive Investments Inc., according to CoStar —  renovated about half of the units. In addition to nine studios, the old configuration included 11 one-bedroom and four two-bedroom units. The new configuration will result in 15 one-bedroom and nine two-bedroom, units.

Engine expects to increase rental income by about 75 percent once all the renovations are complete and the apartments turn over.

The Hollywood residential submarket saw vacancy levels at 3.7 percent in the fourth quarter and rents that increased by 5.4 percent on a year-over-year basis, according to Lee & Associates.

Warren Berzack and Stephen Geiger of Lee & Associates represented the buyer and the seller in the transaction.

One of the many developments underway nearby is an apartment complex across from Garfield Apartments on Hollywood Boulevard. The developer, Astani Enterprises, is constructing a $100 million mixed-use complex on the site of the former Falcon Studios.

“Rental rates throughout Los Angeles have been rising for several years now, and the new construction underway in Hollywood will raise the rate ceiling for all apartment owners,” Berzack said.


Related Articles

arrow_forward_ios
A photo illustration of the planned Vermont Lofts project at 966 South Vermont Avenue (SO.LA, Inc., iStock)
Goodbye Dragon, hello housing: Yet another apartment complex planned for Koreatown
Goodbye Dragon, hello housing: Yet another apartment complex planned for Koreatown
Hollywood Arts Collective rendering (Hollywood Arts Collective, iStock)
Neighbor hits Safran’s Hollywood Arts Collective with $15M suit
Neighbor hits Safran’s Hollywood Arts Collective with $15M suit
Silver Lake co-ceo's Greg Mondre and Egon Durban (Silver Lake, Wikipedia)
Silver Lake invests $500M in Hollywood soundstages
Silver Lake invests $500M in Hollywood soundstages
Interwest Capital Group CEO Alex Roudi and 551 East Riverside Drive in Ontario, CA (Interwest Capital, Rent.com)
Interwest Capital buys 142-unit apartment complex at Ontario Ranch
Interwest Capital buys 142-unit apartment complex at Ontario Ranch
Renderings of Hollywood Boulevard projects (Studio One Eleven)
Developer proposes nearly 650 apartments along Hollywood’s Walk of Fame
Developer proposes nearly 650 apartments along Hollywood’s Walk of Fame
Efram Harkham, Marian Goodman and 1120 Seward Street (Getty Images, Facebook/Efram Harkham, Google Maps)
Harkham family signs leading NYC art gallery to Hollywood building
Harkham family signs leading NYC art gallery to Hollywood building
Tesla's Elon Musk (Getty, iStock)
Tesla plans to go Hollywood with diner, drive-in theater and EV charging station
Tesla plans to go Hollywood with diner, drive-in theater and EV charging station
Monastery of the Angels (Google Maps, iStock)
Preservationists aim to acquire Hollywood Hills monastery
Preservationists aim to acquire Hollywood Hills monastery
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...