12449 Louise Avenue in the Del Rey neighborhood of Palms, rare new construction, sold for $6,300,000. This 25-unit building has 23,787 sq ft of living area, including 8 x 1 bedroom, 1 bath units and 17 x 1 bedroom, 1.5 bath units. GRM (gross rent multiplier) is 11.8 on current rents. The building had been sore point in the community because of its large scale in relation to the single family homes nearby. (See a Youtube video on the subject.)
Santa Monica is the neighborhood where sellers are able to command the highest prices for gross rents. 908 15th Street, with 6 large units, including 1 x 3 bedroom, 4 x 2 bedrooms, 1 x 1 bedroom, and 9,442 sq ft of living area, sold for $2,550,000 or a 14.3 GRM.
West LA is the Westside neighborhood with the lowest GRMs. 1421 Amherst Avenue, a 7-unit building with 6,845 sq ft of living area, sold for $2,000,000 and a 10.3 GRM. Unit mix is 1 x 1 bedroom, 4 x 2 bedrooms, and 2 x 3 bedrooms.
1724 Butler Avenue, also in West LA, sold for $1,500,000, and a 13.8 GRM. The building has 5,852 sq ft of living area and unit mix is 4 x 1 bedroom, and 4 x 2 bedrooms.
Another Santa Monica property, 2027 Euclid Street, also traded at a high GRM. This 8 unit building with 5,616 sq ft of living area has 6 x 1 bedrooms and 2 x 2 bedrooms, and sold for $1,265,000 -- or a GRM of 15.3.Buildings yielding the highest GRMs and providing the lowest returns for investors are in demand as much as the lower GRM buildings in lesser neighborhoods. Santa Monica has its fans and investors are undeterred placing their bets in this prime spot by the beach.
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