Executive Summary

DOWNLOAD OFFERING MEMORANDUM

The Neema Group of Marcus & Millichap is pleased to present 1258 W 37th Dr, a newly constructed 13-bed student housing investment opportunity located two blocks west of the University of Southern California, located within the USC Department of Public Safety 24 Hour Patrol Zone.

The subject property was designed and built by Tripalink, a leading student housing operator with a proven track record of delivering best-in-class off-campus housing and providing tenants with an unparalleled housing experience through their tech-driven and data-oriented operation and development model.

The property was built in 2022 and features a three-story duplex in the front and a free-standing ADU in the rear. The duplex consists of a two-bedroom two-bathroom townhouse unit with four single beds in the front and two-bedroom two-bathroom townhouse unit with six single beds in the rear. The ADU is currently under construction and will be delivered as a three-bedroom, three-bathroom leased under double occupancy for the 2023 Fall Semester.

The building was designed with a co-living philosophy and meticulously constructed with operational efficiency and a superior tenant experience in mind. All bedrooms were designed as co-living private suites and feature a private bathroom in addition to being secured by Smart Locks and Virtual Key Cards, powered by Tripalink’s propriety mobile app and tenant portal.

All bedrooms and common areas are delivered furnished to residents upon move-in and feature in-unit laundry and expansive kitchens; in addition to tenant-centric amenities such as bi-weekly cleaning of the common areas, WiFi coverage, covered utilities, 24/7 maintenance and community events.

The subject property is a half-mile walk to the main University Park Campus of USC and less than a mile from USC Village. It also down the street from the Expo/Vermont metro rail station, allowing residents an easy commute to Downtown Los Angeles, Mid-City, and the Westside outside of their daily commute to campus.

The offering presents a prime opportunity for an investor to acquire a fully recession-proof and passive student housing investment, directly adjacent to one of the leading private universities in the country. The  2022 construction and best-in-class management also offer no deferred maintenance and strong in-place income, with the property being delivered fully occupied for the 2023-2024 academic year, offering an investor immediate stabilized cash flow at a 6.04% CAP rate and 11.57 GRM on current income.

Area Overview

The vibrant downtown area of Los Angeles, located just three miles minutes away from the Keck School of Medicine and the LAC+USC Medical Center, is home to several diverse, ethnic and cultural communities. One can experience the cafes and restaurants of Chinatown or Little Tokyo, explore the streets of Little Armenia or India Town, or feel the energy of the Mexican marketplace at the city’s birthplace, Olvera Street. The nightlife in Los Angeles offers something for any age or any mood. The Music Center is home to numerous plays, musicals and related events, while hot spots like the rooftop bar at the Standard Hotel and Club Soho guarantee a full night of entertainment. For those who are simply looking for a pleasant dining experience, downtown boasts a cuisine that spans from the elegance of the Water Grill, known for its first-rate seafood, to the Latin-jazz inspired energy of Ciudad. The ongoing renovation and innovation of downtown Los Angeles has resulted in a flood of residential development. Bunker Hill and the Wilshire Center (located near the heart of Downtown) offers a truly urban mix of retail, dining and entertainment, as well as plenty of residential opportunities.

The USC Department of Public Safety (DPS) is the extended 2.5 mile radius of area around the off-campus properties where DPS, CSOs and PSOs will respond to calls for assistance 24/7 for the campus community.  The DPS monitors this larger geographic area to ensure community safety and also provides additions services within the Patrol Zone that include Bluelight Phones, Campus Cruisers and USC Trams.

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