Description

Stepp Commercial is pleased to present 652 N Hayworth Avenue in the epicenter of the Melrose Shopping District, one of the most popular and prestigious retail destinations in Los Angeles.

The property is comprised of nine units and will be delivered with RTI plans for two ADUs. These plans also encompass the seismic retrofit upgrades since they are in the same location as the ADUs.  The concurrent construction allows for cost savings for the retrofit.

The building will be delivered with five vacant units, one of which is substantially renovated, and one partially renovated. There is over 90% rental upside from the as-is rents to the market rents including the two ADUs.

The current unit mix consists of (3) two-bedroom, one- and three-quarter bath units and (6) one-bedroom, one-bath units. The upstairs units have balconies, and the downstairs units have the potential to add private patios. The under-utilized front yard could become a common area amenity or an oversized patio for the adjacent downstairs unit, which will be delivered vacant. The property currently has 5 single and 3 tandem parking stalls for a total of 11 spaces.

In addition to being surrounded by some of the most coveted retail in the city, one of main drivers of the strength of this special Melrose/Fairfax/West Hollywood/Grove intersection is the plethora of high paying jobs created by the entertainment, media and technology companies such as Netflix, CBS, Viacom, and HBO.

The average household income in the property’s zip code is over $100,586, which represents nearly a 25% increase over the adjacent West Hollywood neighborhood, and nearly 38% higher than Los Angeles as a whole.

The current vacancy rate for this location stands at 4.1%.  This represents a 30% decrease from a rate of 6.0% in 2020 during the height of the pandemic.

The high barriers to entry for new development resulted in only 167 units under construction in this submarket over the past 12 months and just 407 proposed.

The median home value in this area is just under $1,750,000, which makes access to homeowning extremely difficult for most people.  The unaffordability of the single-family market will further drive demand for the rental market.

The area’s prestigious location, strong employment base, local amenities and easy access to nearby job hubs coupled with high barriers to entry for new development and lack of affordable single-family housing will ensure a constant demand of high-paying renters.