We’ve acquired a 16-unit apartment building in the Jefferson Park area of South Los Angeles for roughly $4.38 million. Located just outside booming Culver City and walking distance to a Metro station, we believe this property has impressive long-term growth potential.
This acquisition is the latest example of our emerging urban neighborhood strategy, in which we identify up-and-coming areas in major US cities, buy in at a low-cost basis, and wait for the market to grow around our investment.
Business plan
The property was fully occupied at the time of our acquisition. We plan to renovate the building’s common areas as well as the individual units incrementally as they turn over.
We plan to hold this property for roughly ten years, with the goal of earning consistent cash flow from rental income while capturing what we believe will be strong price appreciation in South LA, and the area surrounding Culver City in particular.
Why we invested
- Major tech boom in South LA: The property is located just east of Culver City, where Amazon Studios, Apple, HBO, and WeWork are in the process of opening major offices¹. We expect that a substantial number of the thousands of tech employees who will work in these offices will also want to live, dine, and shop nearby, potentially driving a major increase in overall property values.
- City-wide housing shortage: LA housing 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.
