As part of our broader strategy to invest in emerging urban areas, we’ve acquired a 5,400 square foot mixed-use building in the Jefferson Park area of South Los Angeles, with plans to redevelop it to a mix of creative office and retail usage. Located just outside booming Culver City and walking distance to a Metro station, we believe this property has impressive long-term growth potential.

Business plan

Originally built in 1946, the building has been used for light manufacturing with office space. At the time of our acquisition, the building was vacant. We plan to convert the building to a mix of creative office and retail, and complete renovations to lease up the space.

We paid roughly $3.1 million for the property, and anticipate spending an additional $960,000 on development and renovations costs.

With this investment, we aim to earn consistent cash flow from rent payments while capturing what we believe will be strong price growth in South LA over the next seven years.

Why we invested

  • Major tech boom in South LA: The property is located four miles east of Culver City, where Amazon Studios, Apple, HBO, and WeWork are in the process of opening major offices. 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, driving a major increase in overall property values.
  • Steps from transit: The property is within walking distance of the Expo / Crenshaw Station on the LA Metro, offering an accessible office location for companies looking to plant roots in a fast-growing, urban neighborhood.
  • 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.

As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.