(EDITOR’S NOTE: According to public records, the property was sold by an entity that shares an address with California Landmark Group.)
Los Angeles, Calif. April 3, 2024 – Colliers is pleased to announce the sale of a three-story, 120-unit apartment community in the historic Los Angeles neighborhood of La Fayette Park, consisting of a 90,983-square-foot building on a 43,000-square-foot lot. Located on a wide, tree-lined street at 349 S. La Fayette Place, the asset generated multiple competing offers, selling for $43,440,000—approximately $362,000 per unit and $477 per square foot.
Colliers Senior Executive Vice President Kitty Wallace and Associate Vice President Kalli Knight represented the Buyer and Seller in the transaction. The seller had below-market assumable agency debt; however, the Buyer paid cash to preserve the right to create and maintain affordable housing.
The property was purchased with the intent of promoting and advancing workforce and affordable housing initiatives. Since the transaction involved a public agency buyer, the sale was exempt from the ULA Transfer Tax.
“With a shortage of over 500,000 housing units in the City of Los Angeles, mounting obstacles to housing development including the implementation of the ULA tax, CEQA, and elevated costs of construction and debt; finding innovative solutions to alleviate high rent burdens for workforce
residents is paramount,” said Wallace. “This sale exemplifies a creative option to preserve and create affordable workforce housing. We are grateful to have been able to facilitate this transaction and provide a solution that addresses critical community needs.”
Ari Kahan, Principal of California Landmark Group, stated, “We are overjoyed to have closed with a great partner like HACLA who will preserve affordable housing in Los Angeles and are excited to redeploy our capital both in and outside of California towards both affordable and market-rate housing.”
Built in 1971 and extensively remodeled in 2017, the property has 120 subterranean parking spots with third-party billing for EV charging stations. Currently, 85 percent of the units are fully renovated, and their quality exceeds the competitive market set. With high-end finishes and fixtures, kitchens featuring stainless steel appliances, in-suite washers and dryers, hardwood floors with carpeting in the bedrooms, and mini-split AC and heaters, the quality of the building is top of the submarket.
Capital improvements undertaken in the last six years include a new roof, updated plumbing and boiler, a resurfaced and modernized pool, a built-in barbeque area, a redesigned fitness center, EV charging stations, and elevator modernizations. All units include 100-amp electrical panels and new plumbing to accommodate the installation of in-unit washers and dryers.
“HACLA is committed to using every available tool to the greatest extent possible to increase the supply of affordable housing in the City of Los Angeles,” said Doug Guthrie, HACLA’s President and CEO. “We are thrilled that this property, with access to jobs, schools, transit, parks and shopping, will provide a welcoming and affordable home for hundreds of Angelenos for decades to come.”
