SUCCESS STORY
From Expired to Sold in South Los Angeles
1408 W 80th Street
Formerly listed with another multifamily agent who produced minimal activity, the Sellers saw our team activity and contacted us to get the job done.
Price
$
1,100,000
City
South Los Angeles
Current Cap Rate
5.53
%
Price P/ Unit
$
183,333
Lot Size
6,676
SF
1408 w 80th
About the Property
1408 80th Street was a 6-unit property in South Los Angeles, operating at a 5.06% current CAP and offered approx. 40% rental upside. Located just east of Western Ave, the subject property featured (5) two-bedroom units and (1) one-bedroom unit that generated approx. $ 9,150+ in gross monthly income. Please note (2) two-bedroom units will be delivered VACANT upon COE, and there were four section-8 tenants.
Price
$
1,100,000
City
South Los Angeles
Current Cap Rate
5.53
%
Price P/ Unit
$
183,333
Lot Size
6,676
SF
Background
Previously listed with another agent who produced minimal activity, the Sellers saw our team activity in the area's sales comps and contacted KST to get the job done. We listed the property in early April. As interest rates approached 6.5%, many investors adopted a "wait and see" approach. Despite several vacant units offering the opportunity for immediate upside, the property had a large amount of deferred maintenance that deterred most investors.
Result
Since the property required an immense amount of work, we targeted marketing towards experienced investors with strong value-add experience or were familiar with this South LA neighborhood. Ultimately, we were able to identify a buyer who was looking to expand his affordable housing portfolio, and wanted to capitalize on this property's immediate potential. 60 days later, escrow closed at $1,100,000. Given their uneventful experience with their previous broker, the Sellers were relieved KST got the deal to the finish line.
