Ness Holdings has acquired a nearly fully-leased 65-unit multifamily complex in Hollywood for $14.2 million, or $291 per square foot, the company announced Monday.
The property is located at 6520-6530 De Longpre Avenue on a one-acre corner lot within walking distance of the Hollywood/Vine Metro station. In the past year, just three parcels equal or larger in size have sold in the neighborhood, according to PropertyShark.
The former owners, a joint-venture between De Longpre Investors, LLC and Eleanor Avenue Investments, LLC, bought the property in 2005 for $5.6 million, records show. Following a partnership dissolution, they decided to liquidate thee asset, accepting an off-market offer made by Ness Holdings almost a year prior. Henry Garcia of Keller Williams Studio City represented both the buyer and seller.
Garcia said rents at the building were roughly 20 to 25 percent below market.
“In order to capture that upside, Ness Holdings will be improving common areas to better suit the intended tenant demographic,” he said. The building is rent-controlled, so units will be retrofitted and upgraded when existing tenants vacate.
Los Angeles-based Ness already owns and manages a portfolio of multifamily and commercial units throughout Southern California.
“This asset fits perfectly within our business model and was a true value add deal,” said Daniel Mense, vice president of Ness, in a prepared statement. “We are excited about implementing our business plan and bringing an exceptional building to market that will serve the needs of this neighborhood.”