As part of our broader strategy to invest in housing within cities that are chronically undersupplied, we’ve acquired a mixed-use property in South LA, bordering the Fashion District, for approximately $1.79 million. The unique parcel is improved with a commercial building, a four-unit apartment building, and a single-family home, totaling 11,700 square feet of rentable space. This investment is one of several we own in this emerging neighborhood just south of downtown LA.
Business plan
Upon completion of minor renovations to the single-family home and commercial building, we intend to rent each unit for approximately ten years before seeking exit opportunities. Our goal is to earn consistent cash flow from rental payments in the interim, while capturing what we believe will be strong appreciation in the value of the property over the mid to long term.
Why we invested
- Steps from transit: The property is within walking distance of the San Pedro Street station on the Metro Blue Line, offering residents accessibility to downtown in roughly 15 minutes.
- High potential growth area: The property is conveniently located near the University of Southern California and downtown. According to Zillow, home values in the 90011 ZIP code have increased over 60% in the past five years, a trend we believe will continue due to the central location, and access to expanding transportation options.
- City-wide housing shortage: LA home prices have grown much faster than incomes in recent years, resulting in a major affordability crisis within the city. With large sections of the city simply out of reach for many renters and homebuyers, we believe that smart investments in up-and-coming areas will deliver attractive long-term returns. See our LA market analysis.
