8 Units Closed in Up-and-Coming Mid-City Los Angeles
We recently represented both the Buyer and Seller of 4606 St. Charles Avenue. Los Angeles, CA 90019. This was an off-market transaction sold by a long-term family owner on the Seller-side to a 1031 Exchange Purchaser. The value-add property consisted of 8 units constructed in the early 1960s located in the heart of Mid-City Los Angeles nestled in between Washington Blvd and Venice Blvd just east of La Brea, which is a very up-and-coming rental submarket.
I have always been a big fan of this particular pocket of Mid-City Los Angeles for many reasons, not the least of which is the location. It is close to major arteries (in this case La Brea, Washington and Venice) and is a short distance to the 10 Freeway and Expo Line which bridges Santa Monica to DTLA. In the immediate surrounding area of this property you will find numerous multifamily properties which have been vastly improved by value-add investors, as well as a spate of newly constructed units and small-lot subdivisions either recently completed or under construction, which target a tenant-base consisting of highly qualified renters who are priced out of areas to the north and west like Mid-Wilshire, Beverly Grove, Culver City, Palms and Pico Robertson.
The purchaser was a local investor who owns a few similar properties locally and was looking to reinvest the proceeds from a sale of another property via a 1031 tax-deferred exchange. 1031 Exchange laws are such that an exchange Buyer has to transact within a certain timeframe or risk paying what could be tremendous capital gains taxes on the gains from the property that they sold. The purchaser plans to slowly renovate the units as tenancies turn and hold long term.
Transaction Details
- $1,775,000 Sale Price
- 8 Units
- 6,508 SF
- $221,000/Unit
- $272/SF
- One 2-Bedroom vacancy at closing
- All Cash Transaction
- 21 day total Escrow
See additional photos below:
