1234 W Sunset Blvd, Los Angeles, CA, 90026, US

1234 Sunset

Asset description

JLL, as exclusive advisor, is excided to present for sale 1234 Sunset (“the property”), a 6-unit, newly renovated multifamily asset built in 1974.

1234 Sunset has a phenomenal unit mix comprised of one (1) massive five-bedroom unit that has its own private backyard, four (4) two-bedroom units, and one (1) one-bedroom unit that comes with an extra studio/workspace room. Four of the six units have been meticulously renovated with stainless steel appliances, quartz counter-tops, wood plank flooring, in-unit washer and dryers, new dish washers, soft-close cabinetry, recessed lighting, and remodeled sinks and bathrooms. While most of the property is in turn-key condition, there is still ‘meat on the bones’ with two non-renovated units currently being rented at 70% below market rents. If just one of these non-renovated units turn, new ownership will immediately benefit from hundreds of thousands of dollars in created value.

The three-story property is centrally located on Sunset Blvd in the heart of Echo Park, a submarket of Los Angeles coined “America’s Hippest Neighborhood” by Forbes Magazine due to its vibrant arts and music scene, a mix of vintage and modern shops, diverse culinary landscape with trendy eateries, and strong community feel.

1234 Sunset presents a rare opportunity to acquire a cash flowing asset with immediate rental upside potential. The property has strong historical occupancy and new ownership will benefit from Echo Park’s rent growth projections outpacing LA City’s averages for years to come.

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Attributes

Year built

1974

Building area net

6,524 sf

Media

Investment highlights

• 6-unit asset built in 1974 with strong cash flow day-1 and immediate rental upside potential

• Prime location in the heart of Echo Park, situated on the world-famous and highly amenitized Sunset Blvd

• Rare opportunity to acquire a great unit mix of massive 2-bed and 5-bed units with a unique 1-bed + workspace unit on the ground floor.

• The 5-bed unit comes with a private back yard and feels more like a home than an apartment. This unit is currently being rented on a per bed basis, making 1234 Sunset operate more like a 10-unit asset than a 6-unit asset.

• Most units have been meticulously renovated with stainless steel appliances, quartz counter-tops, wood plank flooring, in-unit washer and dryers, new dish washers, soft-close cabinetry, recessed lighting, new sinks & tubs, electrical, and plumbing among much more.

• Strong historical occupancy and rent growth despite many similar properties facing challenges from Covid-19, the rent freeze, and eviction moratorium.

• ±$232k in value created at a 5.50% exit cap rate assumption when unit #C or unit #D vacates.

• High density rental market with strong demographics and rent growth projections outpacing LA City’s averages.