Description
Owner will consider a carry back loan at below market interest rate.
Maher Commercial Realty is proud to present a generational student housing building in the supply constrained North Westwood Village submarket of Los Angeles, walking distance to the UCLA campus. The subject site was torn down and rebuilt by the current owner in 1996, which means the property does not fall under the Los Angeles Rent Stabilization Ordinance (but does fall under CA state rent control).
The property was rebuilt in 1996 with ten large units totaling 27 total bedrooms. The floorplans are perfectly situated to co-living, with rooms large enough to fit multiple beds, large living rooms, multiple bathrooms per unit, and adequate kitchens.
This property presents a Buyer with the opportunity to furnish each bedroom with 2-3 beds and rent them at a pro forma $1,150 per bed, bringing the buildings gross annual income to $759,000. Two of the units are currently furnished and the building is currently approximately 40% vacant. There are currently no tenants on long-term leases.
The building and units are in good to great condition. The building exterior, courtyard, side yard, hallways and subterranean parking appear well maintained. The units are also very well maintained with updated flooring, bathrooms, and some units with updated kitchens.
Glenrock is one of the best streets in North Westwood Village, commanding a high rental value because it is walking distance to campus yet generally considered one of the quiet streets for students to live.
Property Features:
- Sale Price: $11,000,000
- Price/Bed: $231,481.48
- Number of Beds: 54
- Number of Units: 10
- Number of Bedrooms: 27
- Building Size: +/-16,000 Sq.Ft.
- Lot Size: 8,100 Sq.Ft.
- Pro Forma Gross Income: $759,000
- Cap Rate: 4.15%
- Total Expenses: $240,182
- NOI: $505,018
- Zoning: LAR4 TOC 3
- GRM: 17.5
- Parking: Two floor of subterranean parking, +/-40 spaces
- Year Built: 1996 – No LA rent stabilization ordinance
- Amenities: Elevator, Subterranean Parking, Lobby, Exterior Courtyard with Seating Area
Property Highlights:
- Owner will consider a carry back loan at below market interest rate.
- At $231,481 per bed, this is the best “price per bed” sale on Glenrock in recent times. 535 Glenrock sold in 2021 for $263,461 per bed, and 542 Glenrock sold in 2022 for $441,250 per bed.
- The property was built in 1996 and falls outside of the Los Angeles Rent Stabilization Ordinance
- At a pro forma cap rate of 4.2% this is one of the best ROI sales in North Westwood Village, for one of the newest, best parked, best located buildings in this submarket.
- There are ten units and 27 total bedrooms with the potential to operate as a 54-bed student housing facility
- Currently two of the units are furnished; and none of the units are leased “per bed,” they are leased “per unit.” Switching to the “per bed” model will easily increase NOI.
- The building and units are in great shape with very little capital improvement budget needed to bring to state-of-the art condition. Only two units have carpeting, most bathrooms have been upgraded, some kitchens need updating. The common area and exterior are in excellent looking condition.
- There are two floors of subterranean parking totaling ±40 parking spaces which is a lot for this parking-constrained submarket.
- The floorplans lend themselves greatly to student housing with large living rooms, large bedrooms, and multiple bathrooms per unit.
