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OFFERING MEMORANDUM · 916-996-4421
atThe basis is the story. You don't find 52 units this close to DTLA in the low $140Ks a unit, and the in-place yield is already a 7.56% cap.
The income is stable and rent-controlled, spread across 29 studios and 17 one-bedrooms, so no single vacancy moves the needle. It's a 1929 courtyard building with real character, held and maintained by long-term ownership.
Several units sit 15% to 32% under market, and two are vacant and ready to lease at today's rents. This is a basis-and-durability play: buy 52 units near Downtown at a real 7.56%, hold rent-controlled cash flow, and mark rents to market on natural turnover toward an 8% pro forma.
| Annualized | Current | Pro Forma |
|---|---|---|
| Scheduled Gross Rent | $1,074,105 | $1,111,800 |
| Less Vacancy (5%) | ($53,705) | ($55,590) |
| Other Income | $83,582 | $86,089 |
| Effective Gross Income | $1,103,982 | $1,142,299 |
| Operating Expenses | ($552,446) | ($553,577) |
| Net Operating Income | $551,536 | $588,723 |
| Cap Rate | 7.56% | 8.06% |
| GRM | 6.80 | 6.57 |
Expenses run 50% of EGI ($10,624/unit). Other income = parking, laundry, RUBS, storage and pet fees.
| Type | Count | Avg SF | Avg In-Place | Market |
|---|---|---|---|---|
| Studio | 29 | 541 | $1,411 | $1,500 |
| 1 + 1 | 17 | 909 | $1,913 | $1,895 |
| 2 + 2 | 3 | 1,800 | $2,499 | $2,595 |
| 3 + 2 | 2 | 2,300 | $3,634 | $3,925 |
| Bachelor | 1 | 300 | $1,305 | $1,300 |
| Total / Avg | 52 | 797 | $89,509/mo | $92,650/mo |
A handful of units are well under market today. No renovation thesis required — just turnover.
Westlake sits immediately west of Downtown LA and MacArthur Park — one of the densest, most transit-rich, and most chronically supply-constrained rental submarkets in the city. Rent-controlled product here rarely trades, and almost never at this basis per door.
I'll send the current rent roll, trailing-12 P&L, and the full underwriting. Questions or an offer, call me direct.
Request Financials Call 916-996-4421