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Hawthorne apartment complex sells for record $25.8M

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New owner plans to renovate, then raise rent

A one-bedroom apartment in Regal Manor, a large apartment complex in Hawthorne, rents for $1,295 right now. But future tenants can expect to pay more. That’s not just because rents are climbing in that city, as they are across much of Southern California.

Rather, the 187-unit complex has sold for $25.825 million, setting a record in Hawthorne for highest price per square foot ($305) and per unit ($138,102), according to real estate brokerage firm Marcus & Millichap. And, the new owner plans to renovate the 1972 building inside and out—then raise rents, according to listing agent Aaron Fierstein.

Fierstein says he suspects construction of the future Los Angeles Rams stadium about three miles away in Inglewood drove up the value of the property, which measures 1.7 acres. The stadium is scheduled to open in 2019.

The price of a one-bedroom in Regal Manor, which has a pool and underground parking, is just slightly above the September median for Hawthorne, which according to Zumper, which tracks rental prices nationwide, and puts the mid-point at $1,250. That’s significantly less than the median cost of rent across the Los Angeles metropolitan area, which was $1,920 in September.

The cost of rent across Los Angeles jumped 4.9 percent over September 2015, compared to a 19-percent increase (from $1,050) in that same time period in Hawthorne.