Marcus & Millichap is pleased to announce the sale of 7731 Romaine Street, a 10-unit multifamily property located in the premier neighborhood of West Hollywood, blocks from the intersection of Santa Monica Boulevard and Fairfax Avenue. Situated on a corner lot, the building allows tenants to be walking distance to both well-known restaurants and shops along Santa Monica Boulevard as well as the trendy boutiques and bars on Melrose Avenue. With a Whole Foods, Starbucks, and several other destinations within a short walk, tenants can conveniently complete daily errands and the property has earned the title of “Walker’s Paradise” with a Walk Score of 95.
Within the 10 apartments, most of which feature two bedrooms, the current owner has added value by completing substantial upgrades. Included within 70 percent of the units are new quartz countertops, new custom cabinets, new stainless steel appliances, new wood plank flooring, new lighting, new two-tone paint, and newly upgraded bathrooms. The blueprint has already been created for adding similar value to the remaining units and eventually capturing the approximately 21 percent rent upside for the investment. Brand new windows have been installed, while the building exterior features new paint and new landscaping. On-site laundry facilities create an additional income stream for the owner.
Helping the property to command higher rents are the 10 covered parking spaces as well as submarket demographics. With median home prices at over $1,750,000 in West Hollywood, a homeowner’s typical mortgage payment is more than double the average rent for the area. The vast chasm between mortgage and rental payments often produces a strong rental demand, particularly in cities like West Hollywood, where nearly 70 percent of the housing supply is rental-based.
