Slauson Manor Apartments

2204 Slauson Avenue, Los Angeles, CA 90043

Sale Price

$2,295,000

Investment Overview

Units

9

Year Built

1981

Price Per SF

$379

Price Per Unit

$255,000

Current Cap Rate

5.42%

Current GRM

11.91

The Offering

Stepp Commercial is pleased to present Slauson Manor Apartments, a vacant 9-unit building adjacent to the Crenshaw Boulevard commercial corridor.

Slauson Manor Apartments is not subject to LA City rent control and provides an opportunity to either lease-up and enjoy immediate cash-flow or make cosmetic upgrades to unit interiors to achieve higher rents. Cap rates are approximately 100 basis points higher in the greater Inglewood submarket than Los Angeles as a whole, offering a potential stabilized yield of over 10%.

The submarket’s rent levels are below the metro-wide average and is consequently one of the few areas that have experienced rent growth since the start of the pandemic, with a YoY increase of 1.7% from 2019 to 2020.

As the economy returns to pre-pandemic levels and rents continue to rise, the building’s non rent-controlled status will allow the operator to increase rents at a rate that keeps pace with the market.

Built in 1981, the 6,050 square-foot courtyard-style building is situated on an 11,190 square-foot lot and has a desirable unit mix of (6) one-bedroom units, (2) two bedroom, one-bath units and (1) studio. The property has an oversized parking lot with 13 spaces and offers onsite laundry. The electric and gas utilities are separately metered, and water/sewer are master metered.

In addition to rental income from the nine units, the asset also generates signage income with two billboard locations in the front facing Van Ness Avenue and the rear facing Slauson Avenue.

Slauson Manor is only 15 minutes from the employment hub of red-hot Culver City, 10 minutes from the USC/Exposition Park, and a short 5-minute drive to trendy Leimert Park.

It is also just 10 minutes from the new SoFi Stadium and all its peripheral development, which is expected to create up to 4,000 new jobs.

Due to the increased attraction to these employment and leisure destinations, nearly 2,500 new high-end units are under construction, and over 1,000 are either proposed or planned.

The immediate surrounding area is rich with nearby amenities such as Ralphs, Walgreens, Starbucks, Home Depot and many fast-food restaurants and convenient stores. It is also a 15-minute walk to the new Crenshaw/Slauson stop on the light rail Expo Line that will run from Central LA to LAX.

 

 

Investment Highlights

  • 100% Vacant
  • No Los Angeles City rent control (RSO) – built in 1981
  • Over 10% return upon stabilization
  • Centrally located near Culver City and Downtown Los Angeles
  • Short walk to many nearby amenities on Slauson Avenue
  • Oversized parking lot with 13 spaces
  • Courtyard style building on large corner lot