720 S. Hoover ST
Los Angeles , California 90005
- Listing Type:
- For Sale
- Listing Price:
- Property Type:
- Property Subtype:
- Year Built:
- Listing Status:
- Building Size:
- 11356 SqFt
The offering is a Value-Added opportunity for a 27 unit, Contemporary, Non-Rent Controlled apartment property located in a rapidly gentrifying area near Wilshire Blvd in the Wilshire Center zip code. The opportunity shows greater than 28% upside in rents that maybe realized with a re-positioning, cleanup and makeover to transcend neglect and indifference of the prior ownership.
The property built in 1990, is a contemporary, gated and secured, two story, interior courtyard building of frame and stucco construction above grade level secured parking (without soft story retrofit requirement). The property is a true Value-Added Opportunity- in fair condition, in need of renovations, mostly finishes and plumbing upgrades. The property has been somewhat neglected by the prior long term owner. The Tenancy has been stable with in place rents 28% below conservative market level rents for workforce housing and 60% below luxury market rents.
The property is exempt from City of Los Angele RSO (rent control) and the owner has the right to terminate the tenancy of the tenants if conducting substantial remodeling requiring a permit that requires tenants to vacate for at least 30 days (AB1482). All tenants were served with a 60 day notice to vacate in early March 2020. The tenant’s relocation compensation is limited to one month’s rent payment or credit. Some tenants have accepted additional relocation inducements, there are three current vacancies. Three other have not paid April-May rent.
The property is located in a desirable, rapidly gentrifying area in the City of Los Angeles. The location is two blocks south of the intersection of Hoover and Wilshire Blvd, where Hankey Investment Co. is constructing 2900 Wilshire- a $300M, 23 story, 644 unit mixed use, iconic undulating tower across from Lafayette Park. New development abounds nearby from four-plexes to high-rises. This area west of the Central City historically has been highly desirable. The Wilshire Corridor at Hoover and Lafayette Park are showing clear results of a mega renewal stimulated first by the Red Line metro on Wilshire Blvd and now by massive new luxury multi-family development.
• Key Features/ Benefits
• Non- Rent Controlled Asset (no RSO)
• All tenancy may be terminated by right
• Gated, Secured
• Efficient Unit Mix -14- 1+1, 4- 2+2
• High density population area
• Near City Center/ Wilshire Center
• Near Metro Transit- Purple and Red line
• Lack of renovated workforce housing
• Value Added Opportunity
• $400+/ unit rent upside