123 S Westmoreland Ave 16 Unit Apartment Building $1,895,000 ($118,438/Unit) 6.94% Cap Rate Los Angeles, CA 90004

NOW, HUGE $353,000k PRICE REDUCTION! This is a rare chance to secure a property where the interest rate is below the CAP rate. With a current CAP rate of 6.94%, a 10.11 GRM, and a 6.68% cash-on-cash return (based on 50% down for a qualified buyer), the deal pencils our extremely well. Looking ahead, a potential drop in interest rates this year and next year to about 5.50% could further boost returns, lowering borrowing costs and driving CAP rate compression, translating into notable property value growth (call for updated financials).
Exceptional 16-unit multifamily property located in the highly desirable Koreatown/Virgil Village neighborhood, offering significant value-add potential and substantial rental upside. Situated just south of 1st Street between Virgil Avenue and Vermont Avenue, the property occupies a ±6,490 SF lot and benefits from excellent public transit access via the Vermont/Beverly Metro Station and several Metro Local lines.
This well-maintained, two-story apartment complex spans approximately ±7,760 gross square feet and consists of 16 studio units, each with a private bathroom. The vibrant Virgil Avenue corridor nearby is an emerging lifestyle hub featuring a wide array of restaurants, cafés, bars, retail shops, and entertainment venues catering to both locals and visitors.
Situated in a Qualified Opportunity Zone, this property offers a compelling investment opportunity with potential long-term tax advantages and exclusions that have recently been made permanent following the enactment of the new tax legislation (OBBB) effective July 2025. Priced at a 5.85% CAP rate, 11.99 GRM, and $140,500 per unit, the property will be delivered with four vacant units at close of escrow—offering immediate upside for the new owners. Current rents at the property average $976/unit while HACLA’s Small Area Fair Market Rent exceeds $2,208/unit, indicating a potential rent growth of over 100% over time (buyer to verify).
Please do not disturb the residents. Buyers should independently verify the accuracy of any information through inspections, due diligence, and consultations with professionals. The Broker, the agent and the seller are not responsible for the accuracy of any information about the property's size, condition, finances, or features. Buyers should conduct their own due diligence and investigation of the property.
HACLA - Section 8 Payment Standards: https://www.hacla.org/en/about-section-8/payment-standards