Four Multifamily properties closed in the westside has exclusively learned that the Everitt Group, part of IREA, has listed and closed four multifamily properties in the Westside/Santa Monica submarket for more than $40 million within the past three months, the closings all taking place within the past five weeks. Clark Everitt, tells that the first three properties closed for very near list price, including one deal on the Westside that closed with the lowest cap rate and highest GRM since January 2009.

An 18-unit, non-rent-controlled apartment building in West L.A., 1636 Barrington Ave. was listed for $6,995,000 and closed in June for $6,910,000 with a cap rate of 4% and a GRM of 16, breaking down to $388,000 per door. The seller was a private investor.

The Arizona, located at 1251 14th St. in Santa Monica, is a 42-unit condominium development rented as apartments, including 16 newly renovated condos; it sold for very close to its list price of $15,850,000 after the owner, 9 Mile Investments, had invested $1.1 million in renovating and revitalizing the property.

5th St. Santa Monica Apartments, a six-unit property originally built in 1924 and located at 837-839 5th St., just closed last week for fairly close to its asking price of $2,250,000. The seller was a private investor.

“All three of these properties were purchased by individual families who were abler to be more competitive with their terms,” Everitt tells “They were among the top five bidders as far as price, and they had the ability to move quickly on due diligence and go non-refundable, so they were able to outbid institutional buyers on the table.”

IREA’s Yubin Tao also recently closed a $16-million multifamily transaction, but the firm could not reveal any other details to at this time. recently reported on the phenomenon of small groups of inexperienced multifamily buyers outbidding experienced and institutional investors and the ramifications of this phenomenon. According to Everitt, only one of the buyers of the three properties mentioned would qualify as inexperienced—the buyer of 1636 Barrington Ave.—for whom this is their first foray into the commercial real estate market. The other two buyers own other commercial properties.

“I definitely think that fully exposing these properties and bringing in offers from all types of investors helps get the price we’re asking—havingfull exposure in the market and allowing as many investors, brokers, private groups, institutional groups and families as part of the larger pool that took a look at these properties,” Everitt adds. “We target not just the most common buyers, but those sitting on the sidelines waiting for the right property. These properties are marketed as pride of ownership—it’s not just about the return, but about an irreplaceable property in a prime location.”

Everitt says that having low interest rates and multiple offers fighting for the right to be selected as the buyer creates an auction environment that generates excitement for a property. “The more they hear about it from different sources, the more they want that asset for their portfolio if it fits in properly.”

(Originally Reported by Carrie Rosenfeld in Globe St July 30, 2012)