1037 S. Vermont is a ten-unit courtyard-style bungalow complex located in a federal opportunity zone just south of Koreatown. Residing on a spacious 10,857 SF lot zoned LAC2, the property features (10) 1-bdrm. units that offer approx. 100% rental upside compared to renovated units in the area. The property is across the street from a Grubb Properties project spanning a city block, featuring 228 units and 50,000 SF of commercial space (ground-floor leased by Target).
About The Property
Stats
Price $1,340,000
Year Built 1922
City Koreatown
Units 10
Current CAP 4.86%
Price p/ Sq. ft. $166
Price P/ Unit $134,000
Background
Located just south of Koreatown, this courtyard-style bungalow complex featured (10) 1-bdrm. units with approx. 100% rental upside. A residential agent, who had an established relationship with the property’s out-of-state beneficiaries, reached out to KST to help the family cash out.
Challenge
Despite the substantial value-add opportunity, investors felt the price was steep, because the property featured a majority of long-term tenants with low rents. Additionally, this complex had a large amount of deferred maintenance and several SCEP violations that would have been a headache to handle for an inexperienced investor.
Result
With five offers in hand, we toured the property with all qualified buyers, which created a competitive environment and a round of best-and-final offers. Our motivated Sellers, eager to move on, accepted an offer from our Buyer who had the proven experience and resources to realize the property’s full potential. Fast forward 45 days, and the property changed hands for $1,340,000. With interest rates on the rise and market uncertainties looming, our clients couldn’t be happier to get this deal to the finish line.
