For Sale: A 23 Unit @ 4070 Ursula Ave & a 36 unit @t 4063 Nicolet Ave., Los Angeles (90008). These two buildings are being sold together as they are adjacent to each other. Originally built in 1957-1962, the properties were significantly upgraded with a Tax Credit allocation 20 years ago. Updates to these assets include Electrical, Plumbing, and Structural - by permite and compelted to meet compliance of Soft Story Retrofit (Buyer to verify).
Comprised of 60% + Large Two (one bath and 1 & 1/2 Bath) & Three bedroom units, this complex offers residents a host of amenities - such as balconies on many units, plenty of secure parking, common area laundry facilities, and benefits of being situated adjacent to the Jim Gilliam Recreational Center.
There are Regulatory Agreements (attached ) on this asset from previous Tax Credit Allocations that will remain in place - see section 5F of agreement (30 years from 8/1/2001). These Regulatory Agreements required the asset to be lease to residents that qualify as low income. There are also Tax Credit (TCAC) Agreements (Attached) that expire 2033. These restrictions must be followed and may allow you to lease to Section 8 Residents. A bonus to having these TCAC and Reg agmts, an owner could qualify with the assessor and get their property Taxes Abated (as this asset has done for many years). Buyers will need to complete and qualify for BOE-277SF and BOE-277L1 (Please consult your attorney and or tax advisor for additional information).
The current operations show a 5.46% Cap, however, upside exists with residents turning over and achieving market rents under section 8 and leasing to qualified residents over time with turn over. It is anticipated that there will be 30 of 58 residents that will be on Section 8 vouchers.
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