The Church of Scientology Just Paid $15.9M in Hollywood
The nonprofit continues expanding its Hollywood real estate holdings with another apartment acquisition.
At a glance
closed May 11, 2026
15 × 2BD · 13 × 3BD
per door
40,332 gross SF
at close, verified
stated at close
Class A, 4-story mid-rise
0.4 acres · LAR3
2.0 per door
above ULA threshold
Buchanan Street Partners
Church of Scientology
What matters
- The numbers. 28 units, 4 stories, built 2024. Sold May 11, 2026 for $15.9M ($567,857/door, $394/SF) at a stated 4.7% cap on $747,300 NOI.
- Who is the Buyer? The recorded entity for the Church of Scientology, paid a premium compared to a conventional investor. The Church of Scientology has acquired more than $120 million of real estate over the past five years. If you're selling in Hollywood, they're a buyer worth knowing.
- They paid top dollar. $568K per unit and a 4.7% cap isn't where most buyers are buying Hollywood today. On both price per door and cap rate, this sale came in way above what investors would consider a good deal.
- My number would've been closer to a 6.5% cap. That puts the value around $11.5M ($285/SF or $411K/unit). That's below replacement cost, but that's where the income and location tells me the property is worth today.
The Math the Broker Is Pitching
Colliers placed this at a stated 4.7% cap on $747,300 NOI. At $15.9M that math checks: $747,300 divided by $15,900,000 equals 4.70%.
| Scenario | NOI | Cap Rate | Implied Value |
|---|---|---|---|
| As-stated (at close) | $747,300 | 4.70% | $15,900,000 |
| Conventional buyer at 5.25% cap | $747,300 | 5.25% | $14,234,286 |
| Conventional buyer at 5.50% cap | $747,300 | 5.50% | $13,587,273 |
The Church of Scientology paid $2.3M above where a top buyer would have paid. That is big user premium that I am seeing occur when its an owner-user.
What an Operator Sees
Kitty Wallace at Colliers pulled off something rare in this market. Finding a buyer willing to pay a 4.7% cap, $568,000 per unit, for a Hollywood apartment building today is about as good as brokerage gets.
If I were buying it, the numbers would have to look very different. I'd need something closer to a 7% cap with financing around 6% just to make the deal pencil. That puts my value closer to $10.7M, or about $265/SF and $381,000 per unit.
That gap between my number and the sale price is the story. This didn't trade to a traditional real estate investor—it traded to a user with a different investment objective.
What I do like is the building itself. A brand-new 40,000+ SF apartment building doesn't come along very often, and replacement cost is likely well above where this ultimately traded.
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Property and transaction data: CoStar Research.
Write to David Safai at David@AtlasBrief.La
Appeared in the Sept. 6, 2026 edition of The Tape.