The LAAA Team of Marcus & Millichap is proud to present this 22-unit apartment building located at 417 South Kenmore Avenue, in the 90020 zip code of Koreatown – one of the most up-and-coming rental pockets in the city and within walking distance to many of city’s most popular restaurants and social centers such as Sweetgreens, Blue Bottle, HMart, Silverlake Ramen, 7-Eleven, and Quarters Korean Barbecue.

The property comes equipped with many high-end energy efficient features such as LED lights, energy efficient A/C units, electric fireplaces, and rooftop solar panels for the water heaters, which help to significantly cut landlords’ utility costs. A new owner could also explore the possibility of utilizing those solar panels to aid with common area energy expenses or perhaps installing additional ones to do so.

All 22 units have been fully renovated, however there are a couple of different ways that a new owner could potentially add even more value. The largest value-add component that could be realized by the new owner would be by utilizing the new ADU program that was rolled out state-wide in January 2020. Through that program, the new owner has the ability to add up to six (6) additional units to the property depending on the decided upon parking layout, adding over $2 million in value. The path of least resistance to completing this work would be to do so simultaneously with the seismic retrofit work that remains to be completed with the tuck-under parking stalls. Our architect’s feasibility study that outlines the nature of the work and the different combinations of Accessory Dwelling Unit (ADU) types that could be implemented can be found by clicking the following link:

CLICK HERE for the ADU feasibility study

Lastly, another couple of ways a savvy investor could capture some additional upside would be by installing in-unit washers and dryers which would justify approximately $100 of increased monthly rent. Pre-construction work has been done on the units to fit washer and dryers conveniently. Additionally, the implementation of the RUBS program would increase the NOI in the future as it would help to minimize the costs associated with LADWP and city trash.