542 W 76th St, Los Angeles

The LAAA Team of Marcus & Millichap is proud to announce the successful close on 542 West 76th Street, a 6 unit multifamily property located in the 90044 zip code of South Los Angeles.

Property Overview

The subject property sits on a 7,000 square foot parcel and consists entirely of 2 Bedroom / 1 Bathroom units. The property presents an excellent value add opportunity to capture the near 40% upside potential in rents. Also, another value-add strategy the new investor could consider would be to allocate the space behind the building for an ADU, which are now being widely approved by the city and come with far less hurdles during the permitting process. The subject property resides within close proximity to the I-110 Freeway, offering tenants the ability to easily access nightlife, dining, entertainment, and so much more of what the city has to offer. With proper strategy and sound execution, 542 West 76th Street could become a strong cash flowing investment for an experienced value add buyer.

Deal Story

The seller, who is a repeat client that we've represented more than a dozen times on both the buy and list side, purchased this property in December 2019 for $975,000. At that time, the property was listed by a residential agent who only sells single family homes, and for that reason our client believes the property was priced much below the actual value. Even though this would be the smallest property in his portfolio, he decided to buy the property since he thought it was a great deal. However, he quickly learned the smallest property in his portfolio received the smallest amount of attention. For more than 2 years of ownership, the property was all but forgotten about without any capital improvements being done. In January this year, the seller realized he no longer wanted to hold an investment that he was not planning on adding value to so he decided to list it for sale.

Usually, a seller would re-list the property with the agent who brought him the deal, as is the unwritten rule, however the seller did not want to list an apartment building with someone who sells single family houses since they are different product types entirely. Instead, he decided to award our team the listing since we have dedicated our entire career to selling apartment buildings. We do not sell single family homes, and we do not sell any other type of commercial property (retail, office, industrial, etc.); we only sell apartment buildings in Los Angeles and land for...