Faulkner Capital Partners Acquires The Baxter in Hollywood for $33.9M

By the Editorial Team · Sunday, July 19, 2026

Faulkner Capital Partners has acquired The Baxter, an 86-unit apartment complex in Hollywood, for $33.9 million, purchasing the property below construction costs amid extended delays and high expenses faced by the original builder. The firm expects limited new apartment supply in the area due to rising construction costs and stagnant rents, positioning the acquisition for strong returns supported by improving local market conditions and planned infrastructure upgrades.

Faulkner Capital Partners, an investment firm based in Rancho Santa Fe, has acquired The Baxter, an 86-unit apartment complex in Hollywood, for $33.9 million. Located at 1818 North Cherokee Avenue, the purchase price equates to approximately $394,000 per unit and was secured at a capitalization rate of 5.5 percent.

The property, completed in 2024, maintains a stabilized occupancy rate between 90 and 95 percent. Faulkner Capital purchased the asset from the original builder at a price below construction costs. According to company materials, the seller faced extended construction delays and costly floating-rate debt, which contributed to the discounted sale. Rising construction expenses combined with rent growth lagging behind have led to a slowdown in new apartment development in Hollywood and its surrounding neighborhoods.

Evan Faulkner, founder and chief executive of Faulkner Capital Partners, noted the acquisition presented both a favorable basis and strong potential returns, describing the combination as “pretty rare.” He cited improving market fundamentals and optimistic performance projections as key factors influencing the investment. Faulkner also highlighted ongoing upgrades to Los Angeles’s transportation infrastructure and upcoming major events as drivers for renewed confidence in the local housing market.

The firm anticipates that the supply of new apartments in the area will remain constrained until rent levels rise sufficiently to support the viability of new construction projects. This supply limitation follows disruptions linked to the recent implementation of the ULA tax, which initially impacted property values but also created investment opportunities as operating performance has stabilized.

Since 2005, Faulkner Capital’s leadership team has been involved in the acquisition of over 15,000 apartment units across the western United States, totaling approximately $3.3 billion in transaction volume. Between 2013 and the present, the firm has completed 14 apartment property acquisitions and subsequent sales.

The seller in the transaction was represented by Kitty Wallace of Colliers.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.