(Updated with additional information)
Colliers arranged the $43,440,000 sale of a three-story, 120-unit apartment community in the historic Los Angeles neighborhood of La Fayette Park. Located on a wide, tree-lined street at 349 S. La Fayette Park Pl., the asset generated multiple competing offers, selling for approximately $362,000 per unit and $477 per square foot.
Senior EVP Kitty Wallace and associate VP Kalli Knight represented both the buyer and seller. The seller had below-market assumable agency debt; however, the buyer paid cash to preserve the right to create and maintain affordable housing.
The property was purchased with the intent of promoting and advancing workforce and affordable housing initiatives. Since the transaction involved a public agency buyer, identified in published reports as the Housing Authority of the City of Los Angeles, the sale was exempt from the ULA Transfer Tax.
“With a shortage of over 500,000 housing units in the City of Los Angeles, mounting obstacles to housing development including the implementation of the ULA tax, CEQA, and elevated costs of construction and debt; finding innovative solutions to alleviate high rent burdens for workforce residents is paramount,” said Wallace. “This sale exemplifies a creative option to preserve and create affordable workforce housing.”
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