Prospective buyers will find an excellent add value opportunity in the purchase and further completing of the renovations within 1336 Toberman Street & 1335 Valencia Street. This prime 12 Unit Multifamily Portfolio Adjacent to Downtown Los Angeles with 15 off street parking spaces off located within in an ample parking lot. The Properties were built in 1928 and 1906 with spacious units, some DTLA city views and built of wood frame construction with a total of 12 existing (including 1 non-conforming studio) multifamily units. Being south of Pico, west of Staples Center and LA Live, north of Venice and east of Union, the housing demand of this downtown adjacent pocket has driven rental rates to historic highs. The rise in rental rates are directly attributed to the influx of the young professional population flocking to take part in the newly developed infrastructure of now bustling and hip Downtown Los Angeles. As a result, an investor can acquire an approx. 83% newly turned stable property portfolio with additional upside in this rapidly appreciating marketplace. Averaged rent at the subject property was $879/month prior while market rent for similar product receiving renovations is around $1600 to $2100 a month. The site now offers an attractive 5.01% cap rate at closing with a hard to find potential 5.92%+ cap rate upside attainable via minimal additional actions.
STRATEGY: Purchase and lease up existing vacancies then buy out and turn over the last 2 remaining 75% below market tenants, expand parking revenues to create further above market area returns in year one. Further upside can also be created by legalizing the one NC studio.
