The Addison Arms Apartments, a 57-unit apartment building in Sherman Oaks, has sold for $21 million, or $375,893 per unit.
Institutional Property Advisors, a division of Marcus & Millichap, handled the transaction. IPA Executive Director Kevin Green and IPA’s Joseph Grabiec and Greg Harris represented the seller, a private Los Angeles owner, and procured the buyer, a private family.
The Addison Arms Apartments was originally built in 1969. Its previous owners recently spent more than $2 million to improve the property. The money was used to upgrade property systems, common area amenities, and 45% of the unit interiors, according to IPA.
“The property’s mechanical systems and building improvements that have been addressed include a new roof, new commercial air conditioning system, and upgrades to the landscaping, signage, exterior paint, leasing office, clubhouse, hallways, exterior lighting, and the addition of one accessory dwelling unit,” Green said in a statement.
The upgrades, he said, paid off when the sellers sold the property.
“These renovations have significantly increased the asset’s value, creating an incredibly attractive property within the San Fernando Valley,” Green said in a statement.
Addison Arms, according to IPA, is a good location since it offers easy access to the 405 and 101 freeways, both of which are within a mile of the property.
“Given the property’s renowned location in the submarket and strong nearby demographics, including a five-mile population of 583,075 with an average annual household income of $113,220, we held a highly competitive sales process to acquire Addison Arms, which has consistently produced great returns throughout previous ownership,” Grabiec said in a statement.
