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Multifamily

422 N Soto St

422 N Soto St, Los Angeles, CA 90033

Listing Price: $1,410,000

Cap Rate
5.00%
Number of Units
15
Price/Unit
$94,000
Price/Gross SF
$471.26
Gross SF
2,992

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase 422 N Soto Street, a 15-unit multifamily property located in the rapidly growing Boyle Heights rental market of Los Angeles, CA. This property offers an investor the chance to acquire 15 apartment units in Los Angeles for less than $95,000 per unit. Several of the apartments are SRO-type units, which have historically been developed with the intention to provide constant revolving housing to renters flocking to the city looking for work – these units were purposely constructed to be efficient and affordable. This is an ideal product for the Boyle Heights market, since it’s located within three miles of California’s largest employment hub – Downtown Los Angeles. The property currently offers a 5 percent CAP Rate to a new investor with potential rental upside totaling approximately 58 percent. The property offers nearly 3,000 square feet of living space on almost 6,000 square feet of land. In addition to its 15 income-producing units, the open space at the rear of the parcel may provide an additional revenue stream to a new investor via parking income. Since SRO type units were built for short-term tenancies, they help an owner to avoid the rent stagnation that can plague certain rent-controlled assets. A new investor may instead recognize the benefit of having short-term, efficient apartment units in a gentrifying market with rapid recent rent growth. The property sits at the intersection of Soto Street and Folsom Avenue, less than 10 parcels north of Cesar E. Chavez Avenue, providing residents immediate access to Boyle Heights’ heaviest retail corridor. The boulevard offers access to a variety of major retailers and restaurants, including Walgreens, Northgate Market, McDonald’s, King Taco, and La Monarca Bakery & Cafe. USC Medical Center and Adventist Health White Memorial Hospital are both major medical employers in the community, helping to now draw a higher-paying tenant profile than in years past. The local market has experienced accelerated gentrification over the past three years, which has brought along increases in market rents and property values at the same time.

Investment Highlights

  • Attractive Price Per Unit – Rare Opportunity to Purchase 15 Income-Producing Apartments in Los Angeles County for Less Than $95,000 per Unit
  • True Value-Add Offering – Average Monthly Rent at 422 N Soto Street is Approximately $576 While Similar Units in Boyle Heights are Renting for Nearly Double that Amount
  • On-Site Parking Available – Parcel has Enough Space to Potentially Accommodate Up to Six Parking Spaces
  • Desirable Boyle Heights Location – Boyle Heights Attracts a Variety of Tenants with Its Affordable Cost of Living, Ongoing Gentrification, Proximity to USC Health Sciences Campus and Cal State Los Angeles, and Its Short Commute to Downtown Los Angeles
  • Proximity to Cesar E Chavez Avenue – Property is Two Blocks from Boyle Heights' Heaviest Retail Corridor, Providing Tenants Access to Walgreens, McDonald's, La Monarca Bakery & Café, and Several Other Retailers

Exclusively Listed By

Listing Price: $1,410,000

Cap Rate
5.00%
Number of Units
15
Price/Unit
$94,000
Price/Gross SF
$471.26
Gross SF
2,992

Investment Highlights

  • Attractive Price Per Unit – Rare Opportunity to Purchase 15 Income-Producing Apartments in Los Angeles County for Less Than $95,000 per Unit
  • True Value-Add Offering – Average Monthly Rent at 422 N Soto Street is Approximately $576 While Similar Units in Boyle Heights are Renting for Nearly Double that Amount
  • On-Site Parking Available – Parcel has Enough Space to Potentially Accommodate Up to Six Parking Spaces
  • Desirable Boyle Heights Location – Boyle Heights Attracts a Variety of Tenants with Its Affordable Cost of Living, Ongoing Gentrification, Proximity to USC Health Sciences Campus and Cal State Los Angeles, and Its Short Commute to Downtown Los Angeles
  • Proximity to Cesar E Chavez Avenue – Property is Two Blocks from Boyle Heights' Heaviest Retail Corridor, Providing Tenants Access to Walgreens, McDonald's, La Monarca Bakery & Café, and Several Other Retailers

Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase 422 N Soto Street, a 15-unit multifamily property located in the rapidly growing Boyle Heights rental market of Los Angeles, CA. This property offers an investor the chance to acquire 15 apartment units in Los Angeles for less than $95,000 per unit. Several of the apartments are SRO-type units, which have historically been developed with the intention to provide constant revolving housing to renters flocking to the city looking for work – these units were purposely constructed to be efficient and affordable. This is an ideal product for the Boyle Heights market, since it’s located within three miles of California’s largest employment hub – Downtown Los Angeles. The property currently offers a 5 percent CAP Rate to a new investor with potential rental upside totaling approximately 58 percent. The property offers nearly 3,000 square feet of living space on almost 6,000 square feet of land. In addition to its 15 income-producing units, the open space at the rear of the parcel may provide an additional revenue stream to a new investor via parking income. Since SRO type units were built for short-term tenancies, they help an owner to avoid the rent stagnation that can plague certain rent-controlled assets. A new investor may instead recognize the benefit of having short-term, efficient apartment units in a gentrifying market with rapid recent rent growth. The property sits at the intersection of Soto Street and Folsom Avenue, less than 10 parcels north of Cesar E. Chavez Avenue, providing residents immediate access to Boyle Heights’ heaviest retail corridor. The boulevard offers access to a variety of major retailers and restaurants, including Walgreens, Northgate Market, McDonald’s, King Taco, and La Monarca Bakery & Cafe. USC Medical Center and Adventist Health White Memorial Hospital are both major medical employers in the community, helping to now draw a higher-paying tenant profile than in years past. The local market has experienced accelerated gentrification over the past three years, which has brought along increases in market rents and property values at the same time.

Exclusively Listed By

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