324 W 51st St, Los Angeles

The LAAA Team of Marcus & Millichap is proud to announce the successful closing of this vacant 4 unit building located at 324 W 51st St in South Los Angeles.

Offering Description

This value-add and development opportunity is located at 324 West 51st Street in Los Angeles, California. The site currently consists of a fully vacant 4-unit multifamily property totaling 3,916 square feet and sits on a single parcel totaling 5,508 square feet (.13 acres) zoned LARD2 with Tier 1 TOC Bonus. The offering comes complete with RTI plans that permit the new investor to upgrade the units from 1 Bedroom / 1 Bathroom to (2) 3 Bedroom / 1 Bathroom, and (2) 3 Bedroom / 1.5 Bathroom units. Additionally, the deal will be delivered with RTI plans that permits the new investor to add two (2) detached, 641.5 square foot ADU’s behind the existing structure which would bring the total unit count to six (6) and with a total square footage of 5,200. The addition of the ADU’s combined with the unit conversions will heavily increase the property’s value and allow the new investor to collect significantly higher rents than what would have been possible before.

Deal Story

After sending our "just listed" email announcement to nearly 20,000 brokers and principals in Los Angeles, we were able to quickly generate 3 offers from qualified value-add and developer buyers. We opened escrow in early August 2021 with a buyer who gave the seller a full list price offer. The main contingency of the contract was simply that the seller would need to provide the buyer with fully RTI permits for the remodel work that needed to be done on this fully vacant 4-unit property. The RTI permits that the seller needed to deliver to buyer before close were to build (2) detached ADUs as well as permits to completely remodel and re-configure the existing 4-unit structure. As the structure stands today, the 4 units are all 1 bed / 1 bath floorplans which does not maximize the property's potential. The RTI plans for the remodel would convert those (4) 1 bed units to (4) 3 bed units, significantly increasing the pro forma value.

It took the seller just about 2 months from the time we opened escrow to get all the RTI permits finalized with the City, which led to our successful close of escrow last week. Now, the buyer is able to immediately start work on building the (2) detached ADUs and reconfiguring the floor plans of the 4 current units.

This sale was successful for all parties. The...