Hollywood Apartment Buildings for Sale – 5663 Fountain Avenue, LA CA 90028
This 1950s Hollywood Apartment Building sold for $1,310,000 after receiving 9 offers and going through a Best & Final round
By David Bramante
I am proud to announce the sale of 5663 Fountain Avenue. This ’50s apartment building is located in the highly desirable Central Hollywood sub market of Los Angeles. Below are the highlights of this investment opportunity:
PROPERTY: 5663 Fountain is an 8-unit apartment building that is comprised of 6,462 building square feet, and it is situated on a large 7,510 square foot lot. There is on-site parking for 7 of the 8 units, and 6 of the spaces are covered carports with small storage spaces. The unit mix is excellent and consists of all 2-bedroom/1-bathroom units, with the square feet of each slightly over 800 square feet.
The units are separately metered for electricity and gas, and there is a small front yard that is being under utilized. The apartment building is 2-story and the top-floor units have views of the Hollywood Hills, south Hollywood and Downtown LA’s skyline. Built in 1956, this property has undergone thoughtful maintenance of the exterior, with renovations including items like new windows throughout.
LOCATION: Hollywood is one of the most famous real estate sub markets of Los Angeles, and it is a prominent location for renters and investors for its place as the home of the entertainment industry, including several of its historic studios. Central Hollywood is highly ethnically diverse, densely populated, economically diverse neighborhood and retail business district.
The 2000 US Census counted 77,818 residents in the 3.51 square mile Hollywood neighborhood, which is a high average of 22,193 people per square mile, the 7th densest neighborhood in all of LA County. The ethnic breakdown in 2000 was: Latino/Hispanic 42.2%, Non-Hispanic White 41%, Asian 7.1%, Black 5.2%, and others 4.5%. Additionally, the area can be easily accessed by the Westside, Valley, and Eastside quickly using major thoroughfares and efficient public transit system that services the region. Demand for Hollywood rentals is always high, the vacancy rate is always low and property values drive up quickly year over year.
FINANCIAL: 5663 Fountain has been well-maintained but the current management and ownership team have not successfully turned over units to capture the much higher rents that this types of units would demand. Because of this, the property suffers from extraordinarily low rents for the area for its large 2-bedroom/1-bathroom units coming in at low average rent of $960 per month.
Units of this type and location should conservatively rent for $1650 per month so obviously there is tremendous potential rental upside for an experienced and skilled investor. This is an amazing opportunity for investors to pick up a quality property, in a highly desirable area with amazing opportunity to add-value via untapped rent potential… if the property were 100% turned over with new tenants paying market rate rents, then the return would be 14.79% and the GRM would be 8.52.
For more information about this listing, send an email to firstname.lastname@example.org. If you own a Hollywood apartment building and are interested in selling, let us know. We actually sold the apartment building next door at 5667 Fountain Avenue, Los Angeles, CA 90028.
Click here for the Marketing Package: Hollywood Apartment Building Brokers – BRE Marketing Package Fountain