SUCCESS STORY
25-Unit Portfolio Sale in Northeast LA
3614 Pasadena Ave.
Despite the long-term promise, the Seller considered these properties an outlier in his portfolio and contacted KST to cash out.
Price
$
5,270,000
City
Northeast Los Angeles
Current Cap Rate
4.25
%
Price P/ Unit
$
210,800
Lot Size
51,492
SF
3614 pasadena
About the Property
The Heritage Square portfolio featured 22 residential units and 3 commercial spaces located across the street from the Heritage Square Gold Line Station. 106-114 E. Avenue 37 and 103-117 E. Avenue 36 features a 17-unit bungalow-style property sitting on two parcels of land totaling 38,583 of land. 3614-3618 Pasadena Avenue was a 12,433 lot zoned RAS3. The property consisted of three commercial spaces and 5 residential units. Additionally, this portfolio sat directly across the street from the Gold Line station and was eligible for Tier 3 TOC incentives.
Price
$
5,270,000
City
Northeast Los Angeles
Current Cap Rate
4.25
%
Price P/ Unit
$
210,800
Lot Size
51,492
SF
Background
Sitting across from the Heritage Square Gold Line station, this 25-unit mixed-use portfolio sits on approx. 51,000+ of land and features approx. 60% upside in rents. Despite the long-term promise, the Seller considered these properties an outlier in his portfolio and contacted Max to cash out.
Challenge
Despite the significant financial upside and neighborhood revitalization, the property's unique unit mix, low rents for most units and a "laundry list" of deferred maintenance would shrink the buyer pool. Max had to manage the Seller's expectations while looking for a value-add investor capable of taking on a major mixed-use project.
Result
Thirty days after signing the listing, Max identified a well-qualified buyer. Escrow opened in Nov. 2021, and despite multiple obstacles during the due diligence period, closed at $5,270,000. The Seller was thrilled to cash out on his portfolio outlier, and the Buyer is eager to explore multiple mixed-use ideas in this developing Northeast LA neighborhood.
