GF Properties has acquired a 72-unit apartment apartment complex in Los Feliz for $26.05 million, or $366 per square foot, in an off-market deal.
The seller, the Zeff family trust, never formally listed the property on Kenmore Avenue but had received multiple cold offers in the mail, according to broker Chuck Henderson of Beverly Hills Realty Group.“This is an A location,” he told The Real Deal. “You go up the street and you have $2 million, $3 million houses and the building has great views of the Hollywood sign.”
Sherman Oaks-based GF has plans to raise rents by up to 40 percent after renovations, according to Henderson. Currently, the monthly average rent for the building, which was fully occupied at the time of the sale, is about $1,620.
The sale’s price per square foot is nearly 60 percent above Los Feliz’ two-year average of $229 per square foot, according to CoStar.
The company financed the deal with a $12 million loan from JPMorgan Chase Bank.
The Zeff family, which owns about 600 units in Los Angeles, acquired the Kenmore Avenue apartments about 20 years ago for $4.7 million, Henderson said.
GF specializes in multifamily redevelopment and management and owns at least 15 properties in L.A. County, according to its website.
Less than a mile away, Santa Monica firm Dynamic Development Company is planning a 96-unit complex at the corner of Western and Franklin Avenues, TRD reported in June.