Market: As we continue through the month of December, the East Hollywood submarket continues to be a seller’s market as values continue to increase. Over the last four quarters, the average price per square foot and price per unit both increased despite capitalization rates increasing slightly.

Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero, while interest rates for five- and 10-year fixed loans have decreased since August.
 
Valuation Metrics: Over the last four quarters, average price per square foot and average price per unit increased by 8.8% and 7.3% respectively. Capitalization (CAP) rates for the period averaged 4.51%.
 
Rents: On average, year-to-date rents have decreased across all unit types.
 
Outlook: With the defeat of Proposition 21, apartment owners have some breathing room as there is a higher level of certainty regarding vacancy control for the next year. We expect to see an uptick in investment sales in the near term as owners are looking to move their money out of California and into other states.  

Owners: Call us if you would like to receive offers for your investment property, or if you would like to know the current value of your property.

Buyers: Give us a call and let us know your buying criteria.

Referrals: If you know anyone who is considering selling their property, please don't hesitate to make an introduction or forward this email.
Rental Rates Overview
Small Balance Freddie Mac Lender Rates
Average Price Per Square Foot - East Hollywood
Trailing four quarters averaged $363 vs $334 for the same period in 2019.
Average Price Per Unit - East Hollywood
Trailing four quarters averaged $273,751 vs $255,225 for the same period in 2019.
Average Cap Rate - East Hollywood
Trailing four quarters averaged 4.51% vs 4.30% for the same period in 2019.
John Swartz | Managing Director | 213.430.2526 | CA Lic 01873487 | email me
Josh Kaplan | Managing Director | 213.430.2538 | CA Lic 01934177 | email me
Troy Lucero | Senior Associate | 213.457.1656 | CA Lic 02015705 | email me
601 S. Figueroa Street | Suite 3650 | Los Angeles, CA 90017
P: 213.624.5700 | F: 213.624.9203