412 Union Drive, Los Angeles, CA 90017

Property Description

FULLY PARKED 18 unit multifamily investment in City West, minutes from the Downtown Los Angeles core, with 22 on site parking spaces. The offering consists of two adjacent two story walk up buildings (412 and 416 Union Dr.) on a single R4 zoned parcel of approximately 0.38 acres, built in 1925 and totaling approximately 10,950 gross square feet. On site surface parking runs along the eastern boundary with a striped lot spanning the full southern edge of the site. Competing vintage buildings in the submarket offer street parking only or no parking at all, so a fully parked property leases faster and supports a rent premium on every turn. LARGE UNITS: the building area averages roughly 608 square feet per unit, well above the 450 to 500 square foot studios typical of competing vintage product nearby. The mix is 16 studios and 2 one bedroom units, all with one bath, with spacious floor plans that include separate full kitchens, generous closets, original hardwood flooring, ceiling fans, and wall heaters. A number of units have already received updated flooring, cabinetry, countertops, and bathroom fixtures, establishing the renovation standard a new owner can carry through the balance of the property. SIGNIFICANT UPSIDE: current rents average well below market, and three units will be delivered vacant at close of escrow for immediate renovation and releasing. Gross potential rent grows from $219,695 to a projected $366,000 on a fully stabilized basis, lifting net operating income from $130,358 to $218,772, the cap rate from 6.21% to 10.42%, and the GRM from 9.56 to 5.74. Offered at $116,667 per unit and $191.78 per square foot, approximately 19% below the average price per unit of the two most recent comparable sales in the 90017 zip code. Close to the Financial District, the Civic Center, the 110 and 101 freeways, and Metro rail and bus service. Buyer to independently verify all information.