Property Details
Year Built: 1927
Units: 40
Price / Unit: $131,250
Price / SqFt: $235
CAP: 4.77%
GRM: 11.17
Executive Summary
INVESTMENT HIGHLIGHTS
- 1812 West 5th Street is a 40-unit apartment building located in a prime Westlake location just north of 6th street near McArthur Park and the Home Depot, a highly walkable location with access to entertainment, shopping, dining, nightlife, and employment opportunities.
- Built in 1927, this value-add investment presents the investor an opportunity to achieve a 37% upside in rents after renovations when the units turn. The property will be delivered with nine vacancies at the close of escrow.
- The subject property is being offered at a 4.60% current cap rate and a 11.40 GRM on current income.
- Ease of management as the electric and gas utilities are separately metered. There is also a RUBS program in-place for future tenants of water and sewer partial reimbursement.
- The subject property has an incredible walk score of 93, a “Walker’s Paradise” recognized for its unparalleled access to dining, shopping, parks, schools, amenities and entertainment; and is a short walk to MacArthur Park, Good Samaritan Hospital and the Metro Purple and Red Lines.
- Westlake is the second-most dense neighborhood in Los Angeles County, according to the Los Angeles Times; it’s rental market continues to thrive as it is in the center of high-growth neighborhoods such as Pico-Union, Koreatown, Echo Park and Downtown Los Angeles
