Winstar Properties Buys Hollywood Building on Sunset Boulevard
William on Sunset is a 79-unit apartment property at 5837 W. Sunset Blvd. in Hollywood. (Jay Sanchez/CoStar)
By Jack Witthaus
CoStar News
October 3, 2023 | 2:00 P.M.
A Los Angeles multifamily investment firm bought an apartment property for less than its previous sale price in another sign of how interest rates are affecting real estate deals.
An entity related to Winstar Properties bought the roughly 79-unit 5837 W. Sunset Blvd. in Hollywood for $27.3 million, or about $345,570 per unit, according to CoStar data. That's well below the Hollywood average of $432,000 per unit.
The seller was Metwest Property, and the property is located near Netflix's Hollywood offices. The property features a pool, courtyard and fitness center.
The Sunset Boulevard property opened in 2016 and sold for roughly $38 million, or about $481,000 per unit, in April 2019. However, rising interest rates have dampened real estate sales this year and made it more costly for buyers to borrow money. The sale was the third-biggest in terms of total price in the Hollywood apartment market this year, according to CoStar data.
"Given the rise in debt costs, this is a clear example of investors exercising more caution and having a more difficult time achieving their return requirements," said Ryan Patap, senior director of market analytics for CoStar Group in Los Angeles.
The Hollywood apartment market has a 5.6% vacancy rate, above the greater Los Angeles average of 4.8%, according to CoStar data. The market's average asking rent is $2,366, above the greater L.A. average of $2,229.
Representatives for the buyer and seller didn't respond to emailed requests to comment from CoStar News. A roughly $1.6 million transfer tax was paid as part of this deal, according to public records.
For the Record
Marcus & Millichap's Neema Ahadian and Leonardo Laterza were the listing brokers in the deal, according to CoStar data.