The Neema Group of Marcus & Millichap is pleased to present 1216 W Court St. in Los Angeles, CA. Built in 1927, this property is made up of 20 singles located minutes from Downtown Los Angeles in the Greater Echo Park Elysian neighborhood of Los Angeles with easy access to the 110 and 101 Freeways. This is an ideal investment opportunity located in a rapidly gentrifying submarket of Los Angeles with strong cash flow at a 4.74% CAP rate on current income with additional 20% rental upside when units turn. With strong in-place cash flow and opportunistic financing, there is a strong projected cash on cash return of 8.0% on the current income at the asking price.
1216 W Court St. is a well-kept building with minimal deferred maintenance allowing an investor to continue to add value through the focus of interior renovations for the remaining unrenovated units. Over $80,000 of capital improvements have been put into the property by the ownership in 2021. The pro forma rents of $1,350 are proven as the recently rented units have achieved that rental rate. Additionally, there is a RUBS program in-place to reimburse the landlord of water, sewage and trash expenses as well as monthly cap ex reimbursements for common area improvements. The property features a private wood sundeck spanning the length of the building’s rear. The units are separately metered for gas & electric, and have upgraded electrical. Furthermore, there is laundry facility on-site with two washers and two dryers providing additional monthly income.
The Westlake area is rapidly gentrifying and experiencing an influx of new developments, including five recent projects within walking distance of the subject property. Court Street is close to the local bus lines and Metro Red, Purple, A, and E Lines, allowing for a fast commute to many neighborhoods in Los Angeles. With it’s close proximity to schools, transit, and shopping, this location makes it convenient for residents to commute through the city even without a vehicle. South Park is the second-most dense neighborhood in Los Angeles County, according to the Los Angeles Times; its 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.
Westlake, located right outside Downtown’s employment hub, is
a bustling neighborhood with a young professional demographic. Westlake is adjacent to other no-table neighborhoods, including Echo Park, Pico Union, Downtown and Koreatown. The neighborhood is extremely dense, with endless streets lined with small businesses. MacArthur Park, designated as the City of Los Angeles Cultural Monument #100, is located in Westlake and is adjacent to the Metro’s Westlake/MacArthur Park Station, which affords access to the Red and Purple lines. Those lines provide public transportation toward Downtown, North Hollywood and toward Koreatown, with West Side extensions projected to be completed in 2027.
A CENTRAL LOCATION
Westlake is located in Central Los Angeles just to the east of Koreatown and south of the neighborhoods of Silverlake and Echo Park. It is slightly north of Downtown with boundaries defined
by some of LA’s oldest and most well-traveled roads — the 101 Hollywood Freeway, the 110 Harbor Freeway, West Olympic, Virgil avenue, Temple Street and Glendale Boulevard.
Westlake’s central location near Downtown Los Angeles results in excellent walkability and accessibility for its residents. The Olympic is walking distance to the MacArthur/Westlake station, with access to the Metro Red and Purple lines.