423 E 7th St Los Angeles, CA 90014; Hotel & Motel For Sale; 1/19
203 Units SRO in DTLA
|No. Units||203||Gross Rent Multiplier||6.10|
|Building Size||35,100 SF||Occupancy||47%|
|Property Type||Multifamily||Year Built||1924|
|Property Use Type||
|Lot Size||9,589 SF|
BRC Advisors is pleased to offer for sale a 203 Unit single room occupancy (“SRO”) property located at 423 E 7th Street in downtown Los Angeles. The Property can potentially be delivered with 108 units vacant. Ownership is not currently renting out any of the vacant units, allowing for an investor to realize immediate upside by implementing a renovation plan. Upon lease up of vacant units, it is only 6.1x GRM (projected $650/mo./unit) and 8.5% Cap Rate!!! There is also upside by converting storage spaces to units. Additionally, the rents of the “longer-term” tenants which are significantly below market can be raised 5% on an annual basis since their utilities are master-metered. Lastly, there is tremendous upside in the location given the rapid gentrification that downtown LA has been experiencing.