1408 West 80th Street is a 6-unit property in South Los Angeles, operating at a 5.06% current CAP and offering investors approx. 40% rental upside. Located just east of Western Ave, the subject property features (5) two-bedroom units and (1) one-bedroom unit that generate approx. $ 9,150+ in gross monthly income. Please note (2) two-bedroom units will be delivered VACANT upon COE, and there are currently four section-8 tenants.
About The Property
Stats
Price $1,100,000
Year Built 1963
City South Los Angeles
Units 6
Current CAP 5.53%
Price p/ Sq. ft. $236
Price P/ Unit $241,667
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.
