The Setup
21 units: 3 studios averaging 624 SF and 18 two-bedrooms averaging 1,250 SF. Gross building is 26,450 SF on a 15,246 SF lot.
What an Operator Sees
Same buyer, same seller, two days apart: Xenon takes Southview's 2014 Sherman Oaks twenty-one-unit at $332,381 a door after paying about $412,000 a door for the 1988 Westwood building — and this asset is roughly 32% below its August 2021 $10.275 million trade.
A repeat buyer is writing checks while the prior peak basis collapses. CoStar prints a 5.26% actual cap and a 10.36 GRM; I still want the T-12.
While the market debates whether Los Angeles multifamily is cheap yet, Xenon's paired buys answer with a portfolio bid. Newer Valley product clearing about $80,000 a door under Westwood tells me the discount is zip code and unit size — and 2021 peak sellers may have to accept that reset to exit.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
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Property and transaction data: CoStar Research.