Ultra Value Add 13 Unit with 5 RTI ADUs
$237k Cost per Door and 7.1% Cap Rate with Construction of ADUs
129 N Avenue 64, Los Angeles, CA 90042
$3,695,000
Offering Price
8.52 %
Cap Rate
9.27
GRM
13
Number of Units
Summary
  • We just improved the pricing by $300k on this unique ultra value-add opportunity in Highland Park! The offering consists of 13 very large residential units with substantial rental and ADU upside. To further boost the already attractive metrics, the buyer can begin construction on 5 RTI ADUs shortly after closing (currently pending sanitation clearance, but can be delivered RTI), which would boost the unit count by nearly 50% to 18 units. Factoring in construction costs for these ADUs at $300/SF ($580k total), the all-in-cost per door comes down significantly to approximately $237k/door at a very attractive cap rate of 7.1% or 10.73 GRM - virtually unheard of in Highland Park. These are not "pro forma" figures and are not reliant on unit turns, and they take into account the cost of building the ADUs. The seller has priced the asset for the buyer to capture an instant equity spread from the construction of the ADUs. Furthermore, new owners can capture incredible upside potential by raising rents in the existing large units which cover an average area of over 800 square feet each. The size of the units results in quick lease-ups, and the property has the additional upside to an 11.5% cap rate and 7.1 GRM. The property is situated close to the vibrant York Blvd and Figueroa Street. Tenants will enjoy living close to trendy shops, galleries, pubs, and gourmet eateries such as Casa Bianca, Sage Bistro, Scoops, Guisados, Owl Bureau, Highland Park Bakery, and The York, located near the 110 (Arroyo Seco Parkway) and just 10 minutes from Downtown Los Angeles! Close to the Gold Line Lightrail, Metro Bus Stops, and major thoroughfares.
  • 5 near RTI Adu's allow the buyer to instantly add tremendous value to the property (solely lacking sanitation clearance)
  • Even factoring in $300/sf estimated construction cost for ADUs for a total of $580k in construction costs, the all-in cost per door would drop down to approximately $237k/door and a 7.1% existing cap rate
  • Low rents allow a new buyer to turn units and capture additional tremendous upside potential
  • Huge units exceeding 800 square feet on average
  • Tremendous upside exceeding 14.6% cap rate (5.65 GRM) at proven market rents
  • Beautiful pool, and individually metered for gas and electricity
North East LA (NELA)
  • If you're looking for an up-and-coming neighborhood in Los Angeles that's a prime spot for apartment real estate investment, Highland Park is where it's at. This area has undergone a major revitalization, with new businesses and restaurants popping up all the time to cater to the young creatives flocking here. The arts scene is thriving too, thanks to galleries like Avenue 50 Studio and live music venues like The Hi Hat. But what really makes Highland Park stand out as an apartment investor's paradise is its proximity to downtown LA without the high prices - plus there are plenty of public transportation options if driving isn't your thing. With so much happening in this vibrant community every day, there's no doubt that now is the time to get in on the action by investing in some of Highland Park's sought-after apartments!
FOR MORE DETAILS CONTACT
Armin Soleimani
Realtor
(310) 666-2246
ziuroiluj@gmail.com
Lic: 01846872
Julio Ruiz
Broker
(818) 524-0706
ziuroiluj@gmail.com
Lic: 01911261