Deal numbers

A cap rate estimate is not available for this property yet. Ask Alex for a pro forma using comparable rent data.

Property details

Type

Apartment

Bedrooms

23

Building size

7,312 sqft

Lot size

6,253 sqft

Year built

1925

Stories

2

Garage spaces

0

Style

Spanish

Heating

Natural Gas,Wall Furnace

Cooling

None

Pool

None

View

Mountain(s),Neighborhood

Status

Active

Days on market

209

MLS #

238850816

About this property

Investment Highlights • Comprehensive 2024 Gut Renovation with New COFO: The entire building was gut renovated, resulting in a new Certificate of Occupancy issued in 2024. Over $1.2 million in capital improvements were completed, including all-new plumbing, electrical systems, drywall, paint, flooring, and cabinetry. This turnkey status provides investors with a high-quality asset and minimal immediate maintenance requirements. • Proven Micro-Unit Model with Strong Rental Yield: The building features 23 units comprised primarily of micro-units (87% studios) designed to serve budget-oriented residents in Los Angeles. This high-efficiency model yields an impressive rent of $5.28 per square foot, justifying the property's valuation through proven rental demand for smaller, affordable living spaces. • Immediate Financial Performance and High Returns: At an asking price of $3,000,000, the property offers a current CAP rate of 8.54% on the buyer's reassessed tax basis, with substantial mark-to-market upside as legacy leases are brought to the property's own recently-achieved renovated rents. • Substantial Built-In Revenue Upside: Financial projections show that monthly income can grow from the current $34,290 to a market rate of $38,337, representing an approximately 12% revenue increase as legacy leases are marked to market. • Strategic Location in Historic South Central Hub: Located at 440 E 27th Street, the property is nestled in a thriving rental hub near the University of Southern California (USC) and major transit routes like the Expo Line. The neighborhood is experiencing active revitalization and sits within a demographic area projected to have an average household income of $81,857 within a 3-mile radius by 2026.

Location

440 E 27th

Los Angeles, Los Angeles, CA, 90011