The Location
Horn Avenue sits just north of Santa Monica Boulevard in West Hollywood, roughly four blocks east of Sunset Strip.
Median household income of $114,758, 29,139 residents, and 31,825 daytime employees.
The Setup
The unit mix is even: 8 one-bedrooms averaging 850 SF and 8 two-bedrooms averaging 1,250 SF, for a average of 1,050 SF per unit.
Gross building area is 19,680 SF.
Covered parking is 32 stalls, two per door.
What an Operator Sees
I'm tracking this one, not liking it. $296,875 a door and a 3.15% cap at close is the number from Azzi Group on 16 units built in 1964.
The seller, MLT Properties, held it about 12.5 years, asked $5,750,000, and took a $1,000,000 haircut over 68 days on market. The Cost Per SF is excellent although the 12.5 GRM seems steep to me unless he has a plan to turn these units fast.
My numbers show that a good operator should be running this at a 4.5-4.75% Cap.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
Know one other LA owner who'd want this deal? Forward this — reply with their email and I'll add them.
Property and transaction data: CoStar Research.