SoldBroker Activity · Entry № 44

45 Unit Palms Closes at a 10.88 GRM- Why I like it

Been waiting for this trade to close. We finally have another real Palms comp: $291K/door, 5.61% cap, and 10.88 GRM.

PublishedJune 26, 2026
StatusSold · Just Closed
DatelineThe Tape · Palms, Los Angeles
3717 Cardiff Ave hero photo
FIG. 01, 3717 Cardiff Ave, Palms, Los Angeles 90034. Listing photo via Northmarq.
Four takeawaysFour things to know about 3717 Cardiff Ave
  1. Another Westside Comp Is Finally Here.  I've been waiting for this sale to close because quality Palms transactions have been limited.  I thought it would trade closer to a 10 GRM and the property traded for $13.125 million, or $291,667 per unit, at a 5.61% cap rate and 10.88 GRM.
  2. 10.88 GRM for an RSO Building Is the Story.  For me, the most important number isn't the cap rate, it's the 10.88 GRM.  This sale suggests there is still strong demand for well-located RSO assets when they're priced to meet the market. While newer non-RSO buildings still command a higher GRM, buyers continue to pay up for quality RSO properties in West LA.  This sale suggests quality RSO apartments in strong Westside locations still command aggressive pricing. Investors are clearly willing to accept the regulatory risk if they believe in the long-term fundamentals.
  3. Replacement Cost Still Matters. The property sold for approximately $314 per square foot. Replacing a similar 45-unit apartment building on the Westside would likely cost well over $400 per square foot, before accounting for land, financing costs, entitlement risk, and years of construction. Buying an existing building at below replacement cost is one of the safest plays if you are going to buy today and that is the only way I would buy an asset today.  
  4. I'm Watching for Confirmation. I'm not ready to call a bottom based on one transaction.  If quality Westside apartment buildings consistently begin trading between 10.5 and 11.0 GRM, I'll become much more confident that values have stabilized after the correction we are in.  Markets don't bottom because of one sale. 
Deal Stats · 3717 Cardiff Ave
Sale Price
$13.125M
closed Jun 22, 2026
Ask Price
$14.7M
initial ask
Bid-Ask Delta
$1.575M
10.7% below ask
Units
45
31 × 1BD · 14 × 2BD
Price / Unit
$291,667
per door
Price / SF
$314/SF
41,797 gross SF
CAP (Current)
5.61%
at close
GRM (Current)
10.88 GRM
at close
Year Built
1973
RSO-applicable
ULA Tax Est.
$721,875
5.5% on amount above $5M threshold
Hold Period
~8.3 yrs
Moss Cardiff Partnership LP

What an Operator Sees

The biggest lesson from this transaction isn't whether 10.88 GRM is cheap or expensive. It's that the market is beginning to establish a price for West LA RSO apartments.

Every closed sale gives us data.  Data that we can also use for Tax Appeals.  Personally, I'd still be looking to buy closer to 9.5-10.0 GRM to create a larger margin of safety. 

I track every commercial real estate sale in Los Angeles so you don't have to.

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OMs: David@AtlasBrief.LA

Brokers
Listing Broker
Mike Hanassab
Senior Vice President
Northmarq
Written from the field

David Safai, operator, developer, GC.

Atlas Home Builders, Inc. is a Los Angeles owner-operator and general contractor. If you are a broker with a listing you want an honest read on, send the OM and the T-12 to David@AtlasBrief.La.

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