Luxury Utama Royale Property were bought in Westwood by Private Buyer
The 18-unit luxury Utama Royale apartments at 10351 Wilshire Blvd. features a lounge club along with a fitness center and spa. (CoStar)
CoStar News
February 23, 2024 | 7:55 AM
A luxury apartment property notched what may be the highest sales price of its kind in more than a year in the city of Los Angeles despite a backdrop of economic headwinds, including higher interest rates and a new transfer tax that's curtailed demand for commercial real estate.
The 18-unit Utama Royale at 10351 Wilshire Blvd. in the Westwood neighborhood sold for $28 million, or roughly $1.6 million per unit, according to a statement by CBRE, which was involved in the deal. A private entity related to Sean Daneshgar was the buyer, and Devonshire Delaware Inc. was the seller, according to the statement.
The property sold despite higher interest rates resulting in fewer apartment sales nationwide. In addition, industry analysts have blamed a new property sales transfer tax, called the mansion tax, on curbing demand for commercial and luxury residential properties. The property was listed for $33.1 million, according to CoStar data.
The last multifamily property with more than 15 units to sell in the city of Los Angeles for more than $1 million per unit was 11024 Strathmore Drive in Westwood in March 2022, according to CoStar data.
The building "offers an exceptional investment opportunity with tremendous upside,” Laurie Lustig-Bower, an executive vice president of CBRE who was involved in the deal, said in the statement.
The Utama Royale property was built in 1992. (CoStar)
The Wilshire Boulevard building was built in 1992 and includes 17 three-bedroom units and one one-bedroom unit, according to the statement. Amenities include a lounge club with a billiard table, entertainment center and fireplace along with a fitness center, spa and subterranean garage parking.
"This sale demonstrates there's still strong interest for high-quality, well-located assets in the market," said Ryan Patap, senior director of market analytics for CoStar News in Los Angeles.
The Beverly Hills-Century City-UCLA multifamily market, which includes Utama Royale, is among the most desirable in greater Los Angeles. The market's average monthly asking rent is $3,272, well above the greater L.A. average of $2,235, according to CoStar data. The market's vacancy is 7.5%, above the greater L.A. average of 5.1%.