A Sherman Oaks apartment complex with 33 units individually deeded as condominiums has sold for $19.5 million, or nearly $600,000 a unit.
The sales price translates to roughly $388 per square foot, far above the average square foot sales price of around $210 for similar properties in Sherman Oaks this year, according to real estate data provider CoStar Group Inc.
“It was a huge price, for sure a high-water mark,” said Brent Sprenkle, a partner in the El Segundo office of Berkadia Real Estate Advisors who represented the seller, Van Nuys-based developer Shapiro Ben-Basat.
The El Dorado Villas, a 50,000-square-foot property at 4510 Murietta Ave., was built as a luxury condo project in 2008, but Shapiro Ben-Basat decided not to sell the individual units as planned because it was a low point in the housing market. “Instead, they leased it out as a luxury apartment building and operated it for seven years,” Sprenkle said.
The high sales price was achieved because of the potential to sell off individual units without having to undergo a condominium conversion process, and because the units are high-end, with an average size of 1,460 square feet. They feature distressed hardwood floors, handmade cabinetry and vaulted ceilings.
The buyer is an Indonesian investor who purchased the entire building with one escrow. “The buyer is going to be really happy long term because the rents will appreciate very well and the exit strategy is obvious since the units are individually deeded as condos,” Sprenkle said. The buyer was represented by Calabasas brokerage Marcus & Millichap.