613 S Detroit
The LA Apartment Advisors are proud to present 613 S Detroit Street, a 6-unit apartment building in prime Miracle Mile, just one half block north of Wilshire Blvd. Built in 1939, this property presents a great unit mix of three 1-bed/1-bath units and three 2-bed/1-bath units. Currently, the rents are more than 50% below market, allowing for significant upside potential. Furthermore, these units are very large due to the fact that this 6-unit building is 6,526 SF, meaning that the average unit is well over 1,000 SF. There is also no earthquake retrofitting to be done on this property.
This listing price offers a very low price/unit and price/sf for this excellent location. In fact, there have been 8 sales of similar apartment buildings within 3 blocks of this property since the beginning of 2017. Out of those 8 sales, the lowest price/sf sold was for $385.84. Six of those eight recent comparable sales sold for well above $400/sf, and most of them were close to $500/sf. Therefore, our offering at $337.11/sf shows that there is a lot of "juice" left in this property.
If you are a value-add buyer, this is the perfect investment for you. For example, there was a recent sale at 625 S Burnside (just 3 streets over), which is an almost identical 6-unit building to the subject property. That 6-unit property sold for $3,160,000, which comes out to $526,666/unit and $486/sf. That sales proves that this market would support an eventual sales value of the well over $3M for the subject property if the rents were raised.
Lastly, the subject property has been in the seller's family for 3 generations (over 40 years). The seller lives in San Diego and is a very passive owner. This is an excellent opportunity for an aggressive, professional investor to get in there and raise rents to market and add an estimated $1M of value.