The Neema Group of Marcus & Millichap is pleased to present 4959 Romaine Street, in Los Angeles, CA. Built in 1956 and renovated in 2019, this 20-unit property totals 15,520 SF in the East Hollywood neighborhood of Los Angeles. The two-story building features 18 one-bedroom units, and 2 two-bedrooms units, all with spacious floor plans and sophisticated interior finishes. The property will be delivered with RTI plans in-place to convert the community laundry room into an one-bedroom 500 SF ADU.
All the units have undergone extensive renovations, including in-unit washers and dryers, hardwood flooring, custom cabinetry as well as high-end appliances. The property is separately metered for gas and electric and has eighteen parking spaces. Additionally, there is a RUBS program in place to bill back utilities.
This offering presents an investor the opportunity to purchase an asset with stable cash flow of 4.56% on current income and extensive renovations, providing passive income in a market that has shown consistent growth in population and rents year over year. There are no long-term tenants as all the units have been leased in 2019 or later.
The East Hollywood neighborhood continues to grow at a rapid pace and attracts high-end residents with the unparalleled access to employment opportunities and education options. The subject property has a walk score of 86 and the location allows for a quick commute to both Hollywood and Downtown Los Angeles via the 101 Freeway. The immediate area surrounding the subject property has a population of over 530,000 within a three-mile radius.
East Hollywood is central to Los Angeles’ most prominent and thriving employment center, Downtown Los Angeles, which boasts more than 500,000 jobs within a 30-minute drive. Furthermore, the neighborhood of East Hollywood offers a dense concentration of hospitals that drives employment in the area, such as Kaiser Permanente Medical Center, Children’s Hospital Los Angeles, and Hollywood Presbyterian Medical Center.
East Hollywood is a commuter-strategic location with proximity to the 101 & 5 Freeways and other transit options. The community has easy access the Metro Red Line Vermont / Santa Monica Station, which operates between Hollywood and Downtown Los Angeles.
Consistent with the greater Los Angeles area, there is a significant affordability gap to homeownership in the East Hollywood neighborhood. As roughly half of the submarket’s owner-occupied housing units are valued above $1,000,000. In recent years the median home price in the area has increased dramatically eluding to the growth of the area, but also the need for substantial renter occupied units.
Along with strong projected population growth in the coming years, increased demand for housing in the submarket will foster substantial rent growth for the foreseeable future, indicating strong market and property performance for years to come. Further supported by dynamic economic base with well-paying jobs, the area has experienced significant growth recently.