Listed at $17.5 Million. Sold for $14.2 Million.
71 apartments sold for $14.2 million, $3.3 million below asking. A strong Westside location and 200K Per Door caught my attention. I asked the broker what got the deal done.
At a glance
What matters
- Great Location but mostly small studios.At $200,000 a door in Westwood, this sale deserves attention. But 63 of the 71 apartments are studios averaging about 400 square feet. Lets dig in more and see if this is a bargain.
- The seller's reason to sell helped create the opportunity.Michael Sterman said the seller was ready to leave the work of managing the property. The buyer offered a large deposit that became nonrefundable after inspecting a sample of the units. The buyer knew they are getting a location that doesn't come to the market that often.
- Under 9 GRM for Beverly Glen is unheard of! The listing reports about $1.62 million in annual gross income and about 900k of NOI. I think a great operator can get this to $1M of NOI.
- The Loan. On the reported $10.5 million loan, examples at 6% interest leave about $279,000 a year with interest only payments. Looks good fro about $3.7M down. And I can see this buyer getting at least $3-4 million in accelerated depreciation immediately.
Deal stats
Why This Sale Caught My Eye
A Westwood apartment building at $200,000 a door gets my attention.
The buyer paid $14.2 million for 71 apartments at 1441 South Beverly Glen Boulevard. The property closed in September 2026 after being listed at $17.5 million.
The location is excellent as it is right by UCLA, Century City, Beverly Hills, and the property has 41,859 square feet on close to 30k SF of Land. The Land alone is worth $8-9M.
Those are reasons to look closer.
What the Michael Sterman Told Me
Michael Sterman got the Deal done in a tough environment. He represented the seller and brought in the buyer.
I asked Michael why the property sold and what brought both sides together at $14.2 million.
He said the seller was tired of managing the property and ready to sell. I think there are a lot of owners that feel that way right now. I felt that way last night when I looked at my text before I was about to sleep and saw that the plumbing in a unit is flooding.
The buyer came in with a large deposit that became nonrefundable after inspecting a sample of the apartments.
That gives me more insight than the price reduction alone.
An owner who wants to leave the business and a buyer willing to commit to closing.
I also asked what Westside buyers want today.
Michael said buyers are focused on income. Higher operating costs and mortgage payments have made them more careful about the return a building can produce. He also described a smaller buyer pool, including buyers from other markets and some large local family offices.
His advice to sellers was direct: Price the property with care and respond to the market. A listing that sits while more buildings come up for sale can become harder to move.
Michael Sterman Gets Deals done.
Senior Managing Director Investments
Marcus & Millichap | Sterman Multifamily Group
Direct: 818.212.2784
Mobile: 818.943.2319
Email: Michael.Sterman@marcusmillichap.com
What Explains the Low Price?
Reported Income $1,615,797, the sale price works out to 8.79 times yearly income.
Under nine times gross income in Westwood makes me want to know what is going on!
Then I look at the unit mix.
The building has 63 studios and eight one bedroom apartments. Nearly 89% of the units are studios, averaging about 400 square feet. Michael acknowledged in the sale announcement that the large share of studios presented challenges.
That matters when comparing the cost per door
The listing shows average studio rent of $1,853 a month. That leaves upside. They should be able to get $1995-2295 once its renovated.
The Operator Takeaway
At $200,000 a door in Westwood and 8.79 times gross income, I think the buyer got a Great Price.
There is room to raise some rents, improve the building’s look, and run it more efficiently.
The first thing I would change is the front. I do not like the current design. I would set aside about $150,000 for architectural panels and as much landscaping as the space and budget allow.
I want the building’s appearance to match the quality of its location.
A better entrance and a more attractive front will help raise rents.
The next opportunity is in the daily operation. A buyer with its own management and repair team can get costs lowered by getting rid of all deferred maintenance. I would consider upfront 100k and get two people in there for 3-6 months to fix, clean, paint and update the building. This will drive down future maintenance costs and reduce turn over.
I would also look closely at the units with rents furthest below market and work on cash for keys.
I see a possible path toward $350,000 a year in cash flow after loan payments through higher collected rents and better cost control. On roughly $3.7 million in initial equity, that would be about a 9%+ cash return.
There may also be a big tax benefit. A cost segregation study could allow the buyer to take some depreciation sooner. Whether those deductions can offset the buyer’s other income depends on the buyer’s tax situation.
Then there is the land: roughly 30,000 square feet in Westwood. My view is that the land alone could be worth around $9 million.
What I like is the combination: a low cost per door, a good GRM, room to increase rents, and a building I would upgrade.
Write to David Safai at David@AtlasBrief.La
Appeared in the Oct. 6, 2026 edition of The Tape.