1142 N. Virgil, sold

This triplex sale closed a while ago, but thought the numbers might interest you.

Price was $701,000.

Property was a newly-renovated triplex, with three 1/1s, each with parking and outdoor space. Estimated square footage was 1,800.

Rents were $1700, $1600 and vacant. My estimate of the achievable rent on the vacant unit was $1800, all day. So, total annual rent of $61,200.

Implied valuation multiples:

  1. 11.5x GRM
  2. $389 / sq ft
  3. $234k / unit

We represented the seller on the deal, a company that buys and fixes up single family homes and small apartment buildings.

But I think both sides did pretty well… these units rent really fast (private little houses, parking, outdoor space, etc.), will be easy to manage, and are walking distance from Sunset Junction. The Buyer locked in what is probably a 6% cash on cash return to begin, with a fixed, 30 year loan. Over time, the cashflow will improve.

Congrats to Buyer and Seller, and to the neighborhood of East Hollywood, which is improving RAPIDLY.