About The Property

1144 Elden was 12-unit property not subject to LA City rent control. Built in 1986, this property currently allows an annual rent increase of 8.8% (5% plus the Consumer Price Comprised of (6) 2-bdrm. and 1.5-bath units and (6) 1-bdrm. units, these units offered approx. 34% rental upside compared to renovated units in the area. Property amenities include on-grade gated parking and a laundry room. 1144 Elden is offered at $307 per foot, $250,000 per unit, 9.42 market GRM, and 7.19% market CAP.

Stats

Price $2,310,000

Year Built 1986

Current CAP 6.67%

Proforma CAP 9.43%

Price p/ Sq. ft. $237

Price P/ Unit $192,500

Background

Located just south of Koreatown, 1144 Elden was a 12-unit property built in 1986. Matthew Hoult of Aaron Kirman Group, who had an established relationship with the property’s out-of-state beneficiaries, contacted us to help them cash out. The property had accrued significant deferred maintenance since the family developed it; however, it held a unique advantage. 1144 Elden was not subject to City of LA rent control.

Challenge

We knew this property would attract tons of interest. But once we started marketing… that’s when s*** hit the fan. The on-site property manager (who lived there rent-free) “claimed” he was owed money in the event of a sale. With our trusted network of experienced vendors, we recommended an attorney who successfully resolved the situation. We were in escrow a week after the resolution, only to discover an affordable housing covenant that should have been removed decades ago. This covenant restricted 10 of the 12 units to low-income housing!

Result

Over the next 9 months (filled with TONS of follow-up calls), we worked with land use attorneys and the City of LA to REMOVE the affordable covenant. Shortly after, a buyer approached us with an all-cash, non-contingent offer. Given the amount of deferred maintenance, we suggested to the Buyer that he tour the property first. The inspection was a win-win for both parties, it minimized our Seller’s exposure, and gave our Buyer an in-depth look at the property. The Buyer still returned with an all-cash, non-contingent offer, and closed escrow in 60 days.

Speaking for myself and everyone involved, you were absolutely the best broker we could have selected to market our portfolio. You found an incredible buyer and were able to guide us through so many challenges, including a global pandemic, and secured us a price beyond our expectations.

- Seller (60 Units by The Grove)

“I cannot say enough great things about KST. They take care of you, they have the connections needed, and they get the job done! We were amazed at how quickly our sale went through during the COVID pandemic.”

- Seller (4 Units in Beverly Grove)

“It was truly a pleasure working with Kenny. He is professional, honest, hardworking and most importantly did what he said he would. Kenny sold the property at list price in less than 60 days from start to finish.”

- Seller (Beachfront Generational Asset in Playa del Rey)

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4754 Oakwood Ave, Los Angeles
Price Paid: $2,200,000
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4754 oakwood - property exterior