Multifamily

725 S Westlake Ave

725 S Westlake Ave, Los Angeles, CA 90057

Listing Price: $17,950,000

Cap Rate
6.45%
Number of Units
172
Price/Unit
$104,360
Price/Gross SF
$398.11
Gross SF
45,088

Investment Overview

725 S Westlake Ave, The Olympic is a unique 172-room apartment building and hotel located in the heart of Westlake between 7th and 8th Street, adjacent to MacArthur Park; a location just over one mile to Downtown Los Angeles that is surrounded by new developments, employment and education opportunities that contribute to significant rent growth year-over-year in this rapidly gentrifying neighborhood. Built in 1925 the Olympic was originally a hotel which has been partially operated as 31 apartment units and 141 weekly rentals. 82% of the building is rented weekly for a rate of $225 per week plus a $25 key deposit, with up to three weeks stay. All 172 units are 150 square foot singles with private bathrooms but no kitchen. The building is comprised of four-story reinforced brick that features a massive lobby, two large basement areas, a courtyard, and the original Olympic Hotel signage. The north basement area has access to the back alley, this space could potentially be leased for additional income. This historic hotel has been features in movies, television commercials, and shows which provide an additional source of income for the current owner when leased for filming. This offering is a rare opportunity to acquire a 172-room historic hotel in Westlake with a 7.69% CAP when fully occupied at market rates and units are leased at market rates. Very low price per unit of $104,360. Alternatively, there is the option to continue to operate as a hotel with weekly or daily rentals. The original certificate of occupancy from 1926 declares the property as a “Four-story, Class C, 172 Rooms Hotel”. Prospective buyers are responsible for evaluating the legality of running short term rental and hotel operations. A complete apartment complex conversion has the potential to yield the highest net income with lower expenses than operating a hotel. The subject property has an incredible walk score of 96, a “Walker’s Paradise” recognized for its unparalleled access to dining, shopping, parks, schools, amenities and entertainment; and is a two-minute walk to the Metro Purple and Red Line. This location makes it convenient for residents to commute throughout the city even without a vehicle. Westlake is the second-most dense neighborhood in Los Angeles County, according to the Los Angeles Times; its rental market continues to thrive as it is in the center of high-growth neighborhoods such as Pico-Union, Koreatown, Echo Park and Downtown Los Angeles.

Investment Highlights

  • The Olympic is a unique 172-room apartment building and hotel located in the heart of Westlake between 7th and 8th Street
  • Adjacent to MacArthur Park; a location just over one mile to Downtown Los Angeles that is surrounded by new developments, employment and education...
  • Built in 1925, the Olympic was originally a hotel which has been partially converted to include 31 apartment units and 141 weekly rentals
  • 82% of the building is rented weekly for a rate of $225 per week plus a $25 key deposit, with up to three weeks stay
  • All 172 rooms are 150 square foot singles with private bathrooms
  • Prime opportunity to acquire a 172-room building in Westlake with a projected 7.69% CAP rate when fully occupied at market rates

Exclusively Listed By

  • Neema Ahadian

    Senior Managing Director Investments

    (310) 909-5444

    Email Neema

    License(s): CA: 01346750

    West Los Angeles

  • Leonardo Laterza

    Senior Associate

    Email Leonardo

    License(s): CA: 01861324

    West Los Angeles

Listing Price: $17,950,000

Cap Rate
6.45%
Number of Units
172
Price/Unit
$104,360
Price/Gross SF
$398.11
Gross SF
45,088

Investment Highlights

  • The Olympic is a unique 172-room apartment building and hotel located in the heart of Westlake between 7th and 8th Street
  • Adjacent to MacArthur Park; a location just over one mile to Downtown Los Angeles that is surrounded by new developments, employment and education...
  • Built in 1925, the Olympic was originally a hotel which has been partially converted to include 31 apartment units and 141 weekly rentals
  • 82% of the building is rented weekly for a rate of $225 per week plus a $25 key deposit, with up to three weeks stay
  • All 172 rooms are 150 square foot singles with private bathrooms
  • Prime opportunity to acquire a 172-room building in Westlake with a projected 7.69% CAP rate when fully occupied at market rates

Investment Overview

725 S Westlake Ave, The Olympic is a unique 172-room apartment building and hotel located in the heart of Westlake between 7th and 8th Street, adjacent to MacArthur Park; a location just over one mile to Downtown Los Angeles that is surrounded by new developments, employment and education opportunities that contribute to significant rent growth year-over-year in this rapidly gentrifying neighborhood. Built in 1925 the Olympic was originally a hotel which has been partially operated as 31 apartment units and 141 weekly rentals. 82% of the building is rented weekly for a rate of $225 per week plus a $25 key deposit, with up to three weeks stay. All 172 units are 150 square foot singles with private bathrooms but no kitchen. The building is comprised of four-story reinforced brick that features a massive lobby, two large basement areas, a courtyard, and the original Olympic Hotel signage. The north basement area has access to the back alley, this space could potentially be leased for additional income. This historic hotel has been features in movies, television commercials, and shows which provide an additional source of income for the current owner when leased for filming. This offering is a rare opportunity to acquire a 172-room historic hotel in Westlake with a 7.69% CAP when fully occupied at market rates and units are leased at market rates. Very low price per unit of $104,360. Alternatively, there is the option to continue to operate as a hotel with weekly or daily rentals. The original certificate of occupancy from 1926 declares the property as a “Four-story, Class C, 172 Rooms Hotel”. Prospective buyers are responsible for evaluating the legality of running short term rental and hotel operations. A complete apartment complex conversion has the potential to yield the highest net income with lower expenses than operating a hotel. The subject property has an incredible walk score of 96, a “Walker’s Paradise” recognized for its unparalleled access to dining, shopping, parks, schools, amenities and entertainment; and is a two-minute walk to the Metro Purple and Red Line. This location makes it convenient for residents to commute throughout the city even without a vehicle. Westlake is the second-most dense neighborhood in Los Angeles County, according to the Los Angeles Times; its rental market continues to thrive as it is in the center of high-growth neighborhoods such as Pico-Union, Koreatown, Echo Park and Downtown Los Angeles.

Exclusively Listed By

  • Neema Ahadian

    Senior Managing Director Investments

    (310) 909-5444

    Email Neema

    License(s): CA: 01346750

    West Los Angeles

  • Leonardo Laterza

    Senior Associate

    Email Leonardo

    License(s): CA: 01861324

    West Los Angeles

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