Investment Overview

Marcus & Millichap is pleased to present Treehouse Hollywood, a newly constructed 60-bed co-living opportunity located at 5842 Carlton Way. The property is situated in an irreplaceable Hollywood location, one block north of the premier Sunset Blvd, in one of Los Angeles' most renowned rental submarkets. The subject property was designed and built by Treehouse, a leading co-living developer and operator with a proven track record of delivering best-in-class co-living properties and providing tenants with an unparalleled housing experience through their community-driven operations, curated amenities and experiential real estate development model centered on creating authentic connections amongst tenants. The property was built in 2019 and features 60 bedrooms across five floors, with a diverse unit mix of 6 studio units, 3 three-bedroom, three-bathroom units and 9 five-bedroom, five-bathroom units. The building also features 21 parking spaces across the two levels of subterranean parking, with several of the spaces equipped for EV charging. Treehouse Hollywood was intentionally designed to foster a sense of community and connection and features amenities such as a recording studio, two-story library, dining hall, communal rooftop and movie theater to serve as a backdrop for authentic connections to flourish. These amenities serve to inspire weekly community events such as karaoke nights and workshops, reducing turnover as tenants blend affordability with an amenity-rich living environment. All bedrooms and common areas are delivered furnished to residents upon move-in and feature expansive kitchens along with cozy living areas. In addition, the community features bi-weekly cleaning of the common areas, WiFi coverage, covered utilities and 24/7 maintenance. In addition to operating the property as a co-living community, there is potential for a supportive housing or mission driven operator to take advantage of natural tenant turnover and convert the entire property to a Naturally Occurring Affordable Housing project and significantly reduce operating expenses through potential master-lease programs, Section 8 leasing or property tax exemptions. The offering is also located in a qualified opportunity zone, presenting a prime opportunity for a savy operator to acquire a newly built property below replacement cost. The property is currently achieving one of the highest rents per square foot across the entire Hollywood rental submarket and presents a unique and lucrative investment opportunity in a vibrant Hollywood location. Located within a high walk score area of 85, the property offers unparalleled access to major entertainment hubs like Sunset Gower Studios and Netflix, as well as a wealth of retail options along Santa Monica Blvd and Sunset Blvd. Its position in Hollywood, one of the city's strongest rental submarkets, is further amplified by its proximity to popular neighborhoods such as Larchmont Village, Hancock Park, Los Feliz, and Koreatown, making it an attractive option for various housing needs including furnished rentals, corporate housing, or supportive housing.