LOS ANGELES, CA – February 23, 2011 – (RealEstateRama) — Lee & Associates-Investment Services Group Principals Robert Leveen and Matthew Sullivan successfully transacted the sale of a portfolio of three bank-owned multifamily buildings after attracting 10 qualified buyers. The properties, at 4122, 4130 and 4136 Palmwood Drive in the Bald win Village section of Los Angeles sold for $1,725,000 or $73.99 per square foot.
“We’re seeing healthy interest from buyers for these types of value-add sales,” said Leveen, who, with Sullivan, represented both the buyer, a private investor, and the seller, East West Bank, in the transaction. “The highest bidders were all cash buyers who already own property in the area and understand these opportunities.” East West Bank acquired the original notes on the properties when the first lender, United Commercial Bank, failed and was taken over by the FDIC, and East West Bank acquired its assets. The properties were foreclosed upon by the 2nd Trust Deed holder in late 2009. Subsequently, East West Bank foreclosed in September, 2010.
During the transition, which took about a year, a number of tenants were not paying rent, and by the time the sale closed, vacancies had increased from two to nine. “Our buyers and bidders knew that, once they cleaned up the rent roll, they could bring in new tenants at market rates and get good cash flow and returns on their investment,” Leveen added.
4122 Palmwood Drive is an eight-unit building with three, one-bedroom, one bath units; four two-bedroom, one bath units; and one three-bedroom, one bath unit. 4130 Palmdale Drive is an 11 unit building with five single + 1 units; five one-bedroom, one bath units; and one two-bedroom, one bath unit. 4136 Palmwood Drive is a 10 unit building with one single + 1 unit; eight one-bedroom, one bath units; and one two-bedroom, one bath unit.
About Lee & Associates-Investment Services Group
Lee & Associates-Investment Services Group (Lee ISG) provides commercial real estate brokerage and advisory services to public and private investors, investment trusts, high net worth individuals and banks and lending institutions throughout Southern California and the nation. Utilizing a team approach that allows us to customize resources to the requirements of each assignment, we assist clients to capitalize on opportunities and build wealth while minimizing costs and mitigating risk.
Our agents represent a comprehensive spectrum of expertise including acquisitions and dispositions, 1031 exchanges, real estate investment consulting, land assemblage, property and portfolio evaluation and market research and analysis for office, industrial, retail, shopping center, NNN and multifamily assets. As a member of the Lee & Associates Group of Companies we also provide our clients with access to local market expertise through 43 offices in California, Arizona, Georgia, Idaho, Illino is, Indiana, Kansas, Michigan, Missouri, Nevada, South Carolina, New Jersey, Texas and Wisconsin.