As part of our broader strategy to invest in emerging urban areas, we’ve acquired a mixed-use building in the Jefferson Park neighborhood of South Los Angeles for approximately $3.8 million.
Located just outside booming Culver City and walking distance to a Metro station, we believe this area offers an accessible office location for companies looking to plant roots in a fast-growing, urban neighborhood.
Business plan
The building offers 5,300 square feet of rentable office and warehouse space. At the time of our acquisition, the property was vacant, but we believe the space could work well for an e-commerce tenant.
We paid roughly $3.8 million for the property, and anticipate spending an additional $320,000 on renovations to lease up the space.
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 Farmdale 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.
