Investment Overview

NOAH Conversion Opportunity with Immediate Eligibility 2622 S Hobart Blvd is an ideal candidate for a Naturally Occurring Affordable Housing (NOAH) conversion. With 38% of tenants already on vouchers and the remaining rents below 80% AMI, the asset qualifies for income certification under California’s Welfare Tax Exemption (RTC §214). New ownership can pursue full property tax relief while preserving affordability and tenant stability. Welfare Tax Exemption Enhances Cash Flow By partnering with a qualified nonprofit or forming a limited partnership with a nonprofit managing member, buyers can pursue the California Welfare Tax Exemption, eliminating property taxes on qualifying units. This strategy significantly enhances net operating income and long-term yield while supporting public affordability goals. Rare Alignment with LA Housing Policy & Future Legislation 2622 S Hobart Blvd directly supports Los Angeles’ anti-displacement initiatives and the City’s broader efforts to preserve naturally affordable housing in vulnerable neighborhoods. With strong tenant stability and below-market rents, the property aligns with key public priorities and is positioned as a model for impact-driven preservation investment in a high-demand urban submarket. Significant Rental Upside with Limited Disruption Current 2-bedroom rents average ~$1,152, while market comparables exceed $2,200 — presenting over 88% rental upside. The property's existing affordability profile allows for low-friction compliance with NOAH guidelines while still offering long-term income growth potential through certification, turnover, or light value-add. SB 1211 Potential (Buyer to Verify) Located on an expansive lot in addition to existing tuck under parking, this property offers a unique opportunity under SB 1211, which may allow for significant ADU development beyond traditional limits. This overlay introduces a new avenue for long-term value creation and increased density for investors. Transit-Oriented Location in High-Demand Submarket The property is located in the West Adams neighborhood of Los Angeles just south of W Adams Blvd, a short commute from major employment hubs in Downtown Los Angeles and Koreatown. Easy access to the 10 Freeway and Metro stops at W Adams Blvd and S Western Ave support both tenants with cars as well as those that rely on public transport, in addition to being walking distance to neighborhood retail amenities. Institutional Scale with Favorable Basis Available as a portfolio with three other buildings, 2622 S Hobart Blvd offers true scale for operators seeking to grow within LA’s urban core. The offering price reflects a favorable cost per unit and square foot when compared to recent sales, with the added advantage of long-term affordability positioning.