Christina Development used Historic Resources Group’s Peyton Hall to preserve the building, which was designed by architect William Hauptman in 1931. When El Palacio was completed, it was dedicated to the president of Spain who had been recently elected.
The property has been designated as a historic landmark.
“Despite the many variables at play in today’s unique economic climate, this sale further reinforces Christina’s investment philosophy that there will always be demand for great real estate in the ultra-prime submarkets of Los Angeles,” Lawrence Taylor, founder and president of Christina Development, said in a statement.
El Palacio has just 18 units, including three two-story townhomes. It features a courtyard and underground parking.
The building was 94.4% leased at the time of the sale, according to CoStar Group Inc.
NorthMarq’s Steven Goldstein and Bryan Schellinger represented Christina Development in the sale.
Figure 8 Realty’s Nikola Kretschmann and Nick Fichera represented the undisclosed buyer.
“The seller, Christina Development, never openly marketed the property for sale and really had no intention of selling, either. Our team was able to source a buyer who was in a sizeable 1031 exchange from the disposition of family assets in New York City and had a desire to move the capital closer to home here in Los Angeles,” Goldstein said in a statement.
“This buyer purchased a couple other multifamily properties in Los Angeles over the last 60 days and had a unique desire for historical properties with active Mills Act contracts, which allow owners of historic properties to get property tax reductions. El Palacio fit the buyer’s parameters as it is one of the most historically significant boutique luxury properties in the city,” he added.
The sale is one of the biggest in West Hollywood so far this year. Other large sales include Cedars-Sinai Health System’s February purchase of a retail building for $29.4 million and the March sale of a 0.7-acre retail site at 8500 Santa Monica Blvd. for $22.5 million.
Source: https://labusinessjournal.com/news/2020/sep/07/historic-west-hollywood-apt-bldg-sells-16-million/