901 S Sherbourne Dr Sells for $6,610,000 | Beverly Hills Adjacent 17-Unit Multifamily Property Sale in Los Angeles

JML Real Estate Group / Sherman and Levine Successfully Close 17-Unit Apartment Building Near Beverly Hills

JML Real Estate Group / Sherman and Levine of KW Commercial are proud to announce the successful sale of 901 S Sherbourne Dr, a 17-unit multifamily property located in one of Los Angeles’ most desirable Beverly Hills adjacent neighborhoods.

The property sold for $6,610,000, making it the largest multifamily transaction closed in the 90035 zip code year-to-date. This sale further demonstrates that well-located Los Angeles multifamily assets continue to command strong investor interest despite today’s evolving market conditions.

The transaction highlights how disciplined underwriting, deep market knowledge, strategic positioning, and strong industry relationships can create successful outcomes for both buyers and sellers — even in a shifting Los Angeles multifamily investment market.

Deal Summary

• Sale Price: $6,610,000

• Cost Per Unit: $388,824

• Cost Per Foot: $291.68

• In-Place GRM: 11.75 +/-

• In-Place CAP Rate: 4.89% +/-

• Units: 17

• Building Size: 24,234 SF

• Year Built: 1989

  
  

Property Highlights

• Beverly Hills Adjacent Location

• Long-Term Ownership

• Corner Lot

• Value-Add Opportunity

• Excellent Unit Mix

Beverly Hills Adjacent Multifamily Assets Continue to Drive Investor Demand

Located just moments from Beverly Hills, 901 S Sherbourne Dr represented a rare opportunity to acquire a sizable apartment building in one of the strongest rental pockets in Los Angeles.

The Beverly Hills adjacent market has consistently remained one of the most sought-after multifamily investment locations due to its central Westside location, strong tenant demographics, walkability, and proximity to world-class dining, shopping, employment centers, and entertainment destinations.

Apartment buildings in the 90035 submarket rarely trade at scale, especially larger assets with strong fundamentals and future upside potential. As a result, opportunities like 901 S Sherbourne Dr continue to generate significant investor attention.

The property’s location offered immediate access to Beverly Hills, Century City, West Hollywood, and Mid-City Los Angeles — all while benefiting from strong long-term rental demand and historically low multifamily inventory levels.

Largest Multifamily Sale in 90035 Year-To-Date

The successful closing of 901 S Sherbourne Dr marked the largest multifamily sale in the 90035 zip code year-to-date, further reinforcing continued investor appetite for quality apartment investments in premier Los Angeles neighborhoods.

Despite higher interest rates, rising insurance costs, and increased operational

expenses throughout Southern California, investors continue to aggressively pursue assets located in supply-constrained submarkets with strong long-term appreciation potential.

Larger multifamily opportunities in 90035 remain particularly difficult to acquire due to limited transaction volume and the prevalence of long-term ownership throughout the neighborhood. Many ownership groups in the area have held assets for decades, resulting in extremely limited turnover.

This scarcity continues to support property values and investor demand, particularly for well-maintained properties with operational upside and attractive unit mixes.

Long-Term Ownership Created a Rare Opportunity

901 S Sherbourne Dr had been under long-term ownership, creating a unique opportunity for investors to acquire a stable asset with future growth potential.

Properties held by long-term owners often provide investors with the opportunity to improve operations, renovate units over time, modernize common areas, and unlock additional long-term value through strategic asset management.

In today’s market, investors are increasingly focused on opportunities that combine:

• Prime location fundamentals

• Durable tenant demand

• Strong long-term appreciation potential

• Operational upside

• Stable existing cash flow

901 S Sherbourne Dr checked many of those boxes, making it a compelling acquisition opportunity despite broader market headwinds impacting portions of the Los Angeles multifamily sector.

Corner Lot Location and Excellent Unit Mix Added Significant Appeal

The property’s corner lot location and strong unit mix further enhanced investor interest throughout the marketing process.

Corner lot apartment buildings often benefit from:

• Improved curb appeal

• Better natural light

• Increased privacy

• Enhanced unit layouts

• Stronger long-term tenant desirability

Additionally, the building’s unit mix positioned the asset well for long-term operational stability and future value enhancement opportunities.

In today’s multifamily market, investors continue to prioritize properties with functional layouts, larger unit sizes, and desirable locations that support long-term tenant retention.

Navigating the Current Los Angeles Multifamily Market

The Los Angeles multifamily market continues to evolve as buyers and sellers adapt to:

• Higher interest rates

• Increased insurance costs

• Rising utility and operating expenses

• Local and statewide housing regulations

• More disciplined lender underwriting

As a result, accurate underwriting and realistic pricing strategies have become more important than ever.

Today’s investors are carefully evaluating:

• In-place income

• Expense ratios

• Deferred maintenance

• Cap-ex exposure

• Rental upside potential

• Neighborhood fundamentals

Even with these market shifts, premier Los Angeles locations — particularly Beverly Hills adjacent submarkets — continue to outperform many other areas due to their long-term desirability and limited housing supply.

Strategic Marketing and Industry Relationships Matter

Successfully closing larger multifamily transactions in today’s environment requires more than simply listing a property online.

The successful sale of 901 S Sherbourne Dr was the result of:

• Strategic pricing analysis

• Targeted investor outreach

• Sophisticated underwriting

• Extensive buyer relationships

• Clear communication throughout escrow

• Strong transaction management

In today’s market, buyers are highly selective and increasingly focused on certainty, operational fundamentals, and realistic underwriting assumptions.

Having deep relationships within the investment community and understanding how buyers are currently underwriting deals remains critical to creating successful outcomes.

About JML Real Estate Group

JML Real Estate Group specialize in multifamily and commercial investment sales throughout Los Angeles and Ventura County.

The team focuses on providing owners and investors with a personalized, transparent, and data-driven approach to apartment building sales, acquisitions, and advisory services.

With extensive experience underwriting multifamily properties across Southern California, the team continues to help clients navigate changing market conditions while maximizing value and creating successful outcomes.

Looking to Buy or Sell Multifamily Property in Los Angeles?

If you are considering selling or acquiring a multifamily property in Los Angeles, Beverly Hills adjacent, West Hollywood, Studio City, Sherman Oaks, Pasadena, or surrounding Southern California markets, contact JML Real Estate Group for a confidential consultation and market analysis to find out what your properties are worth.

Contact us today! 818.657.6556 or jared@jaredmlevine.com