Mid-City Los Angeles Continues to Stay Hot
Congratulations to the Buyer and Seller of this incredibly well-located 8 unit value-add property located in the heart of Mid-City Los Angeles’ Picfair Village (near the intersection of Pico and Fairfax). This pocket of Mid-City continues to stay strong in terms of multifamily investment sales and overall rental demand. Renovated 1960s-vintage one-bedrooms can easily achieve $2,000+/mo and two-bedrooms $2,800+/mo. For this property – there was approximately 45% upside in rents from current to market.
The Seller, as is the case with many local Sellers, was a generational owner who was fatigued by the ongoing stricter rent control laws and overall government regulation that is typical in the Los Angeles apartment business. They had recently allocated significant capital expenditures towards the completion of their mandatory seismic retrofit – a mandate bestowed on about 15,000 other local LA property owners who own 1960s properties with tuck-under parking spaces).
The marketing of this property saw a competitive process with multiple offers generated for the Seller, and ultimately went to a Buyer with an extensive real estate background. The Buyer was attracted to the overall growth of the area, which includes a 28-Unit new construction project on the two adjacent parcels. Among other things, he plans on immediately renovating the two vacant units – as well as building two additional Accessory Dwelling Units (ADUs) in the tuck-under garage spaces to generate additional income. The purchaser utilized short-term bridge financing to acquire the property.
Transaction Details:
- $2,200,000 Sale Price
- $275,000/Unit
- $364/SF
- One 2-Bedroom and one Bachelor unit Vacant at closing
- Financed with private bridge loan
- 45 day total Escrow
