Market: As the holidays are fast approaching with 2021 in sight, the Hollywood submarket remains steady even through the pandemic which has had little to no effect in multifamily values. Over the last four quarters, the average price per square foot has seen a slight uptick as price per unit decreased and capitalization rates increasing slightly as well.
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 have increased by 1.50% as average price per unit decreased by 1.30%. Capitalization (CAP) rates for the period averaged 4.18%.
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.