Park Winona is an extremely rare offering as this is the first time the property has been on the open market in more than 40 years. While the property features significant upgrades to the building systems including a new roof in 2014, copper plumbing throughout the building, new water heaters, and a fully revamped elevator mechanical system, Park Winona is virtually untouched otherwise and offers investors the rare opportunity to completely revamp the community to capture significant rent premiums.
The building is situated on a 21,005 square foot parcel and is comprised of one three-story building above a subterranean, gated, and secure parking structure with 50 individual spaces. Additional amenities include a laundry room with four washers and four dryers, an interior courtyard that is currently used as private patio space for the adjoining units, a large outdoor community area at the entrance of the property, a closed-circuit security camera system, and a community area along the rear of the property; the extensive amount of underutilized common areas offers investors the opportunity to reactivate the space to provide a plethora of modern amenities. In addition to the appealing physical plant of Park Winona, the Hollywood submarket has emerged as the epicenter of content and media in the entertainment industry. More than one million square feet of new office space has been delivered in the past few years and has been immediately absorbed by prominent employers such as Netflix and Viacom, bringing thousands of high paying jobs to the area. With more than one million square feet scheduled to be delivered in the coming years, strong job creation is expected to continue, furthering the demand for luxury housing in surrounding neighborhoods such as Los Feliz.
The building will be delivered with up to 20 vacant units; a staggering 17 units are currently unoccupied, one tenant is scheduled to move out, one unit is functioning as a leasing/on-site management office, and one unit is occupied by the manager who does not have a lease (employment contract). As a result, investors can immediately focus on cosmetic capital enhancements to the unit interiors, common areas, and exterior in order to reposition the asset into one of the premier luxury communities in the highly desirable submarket of Los Feliz. Investors should expect to increase rental income by more than 50 percent from current rents achieved on unrenovated units and, upon completing renovations on 20 units, will still have 33 percent embedded upside remaining.
