As a part of our broader strategy to invest in emerging areas, we’ve acquired a commercial building in the Jefferson Park area of South Los Angeles for approximately $7.49 million.
Located just outside booming Culver City and within walking distance of a Metro station, we believe this area offers an attractive location for companies looking to plant roots in a fast-growing, urban neighborhood.
Business plan
Originally built in 1951, the 15,000 square foot building has been used as industrial storage space. At the time of our acquisition, it was occupied by a short-term tenant. Once their lease is up, we plan to renovate the property to make it suitable for a mix of creative office and retail tenants.
We paid roughly $7.5 million for the property, and anticipate spending an additional $5 million on development and renovation costs. We expect the development and renovation to occur over a period of roughly two years, with a total projected hold period of roughly seven years.
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 several years.
Why we invested
- Major tech boom in South LA: The property is located three miles east of Culver City, where Amazon Studios, Apple, and HBO 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 and Expo / Crenshaw Stations on the LA Metro, offering an accessible office location for companies looking to plant roots in a fast-growing, urban neighborhood.
As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
