As a result of recent upgrades and strong demand for this area, the property has enjoyed increased scheduled rents from $300,000 in 2017 to $329,740 as of October 2018. The strong demand today allows for more upside with continued property improvements, future market rents are projected at $393,600 for a potential increase of 19.3% from in-place October 2018 rents, based on competing rental properties.
Offered for sale by the owner for the first time in 16 years, this property is a rare, hard-to-find investment opportunity priced to sell. The property is encumbered with an attractive loan from Chase Bank with an approximate balance of $2,820,000 and a well-below-market fixed rate of 3.27% for 3 years. There is just over one year remaining at the fixed rate of 3.27%, then adjusting every 6 months thereafter. This allows for cash flow for one year while increasing rents. The loan is assumable for 1% of the loan balance, payable by buyer; or buyer may pay cash; or obtain new financing at buyer's expense.
Most errands can be accomplished by foot
Many nearby public transportation options
Steep hills, some bike lanes
Located at the top of Wilcox Avenue, just north of Franklin and west of Cahuenga Boulevards in the historic Whitley Heights neighborhood of the Hollywood Hills the property is surrounded by single-family homes selling for over $2.0 million on average. This 16-unit complex built in 1926 consists of two 8-unit, 2-story wood frame stucco structures on one lot. The building's architecture of "Old Hollywood Spanish" style with a quiet center courtyard is highly sought after by renters. Each building consists of two 2-bedroom / 1-bath units of approximately 1,100 square feet, and six 1-bedroom / 1-bath units of approximately 900 square feet, for a total of approximately 14,820 square feet in the two structures.
The apartments offer very large eat-in kitchens and other large rooms, compared to other competing buildings with mostly bachelors and singles. Most units have either original or new hardwood flooring, and all units have 9-foot ceilings with crown moldings. All first-floor units have private "walk-up" entry front doors (a few also have back doors). All second-floor units also have private "walk-up" entry doors, 9-foot ceilings, and beautiful interior hardwood steps with original wood banisters leading up to their second-level apartments. Every unit has many windows (all recently replaced) allowing warm and inviting light into the apartments. There is street parking under LA City Permit Parking (Zone 99), restricted to residents of the street.
Every unit has their own hot water heaters located inside the unit and the building has a laundry room on premises. Residents pay for their own hot water heating, unit gas for heating and cooking and residents pay for their electricity. The property is gated with a new DKS access electronic entry system. There is a quaint raised backyard with a barbecue and large seating area for residents to relax. The ownership has made major renovations and upgrades to the property since they purchased the building. Some of those improvements include the following:
Since 2015, Hollywood has been one of the most attractive areas in L.A. County for development. Currently, Hollywood is undergoing more major developments than any other time in the last 50+ years. There are 24* major projects consisting of new high-rise condominiums, offices, hotels, and apartment projects within two miles of Wilcox Courtyard Apartments (*see New Hollywood Development Map). Currently, these projects will add another 1,888 hotel rooms; 615,000 square feet of office space; and 5,100 apartment units with over 388,100 square feet of retail either in final planning stages, under construction, or recently opened. These are in addition to the existing major projects already completed and leasing, just since 2015. When completed, these major projects alone are projected to contribute over $11.6 billion of annual economic output and over 800 direct jobs with salaries of $101,000 on average, all within two miles of Wilcox Courtyard Apartments.
In the next several years, these new projects built by well established, seasoned Los Angeles developers will totally transform Eastern Hollywood into a world-class destination, bringing huge job growth and more reasons to visit or live in Hollywood, which already receives 25 million annual visitors. Major employers are already here adding many new jobs to the area in hospitality, entertainment, medical, high innovation content production revolution companies, etc., which will continue to drive up new rents. (The subject property is currently under rent control by the City of Los Angeles-LAHD.)
Named the "Gateway to Hollywood", the property is walking distance to famous Hollywood and Vine, which is in the highly sought-after rental community of Hollywood. Downtown Hollywood and the historic Capitol Records building can be seen from some of the units and is only four blocks southeast of the property. Hollywood is a world-renowned tourist attraction as well as a hub for local urbanite patrons of the countless hip bars, night clubs, coffee houses, and restaurants. Major attractions just blocks away include the new W-Hotel, The Hollywood Walk of Fame, Chinese Mann Theatre, I-MAX Theatre, Cinerama Dome Arch light, and the Dolby Theatre which hosts the Annual Academy Awards. Other nearby communities include downtown Los Angeles, The Grove, Universal City, and NoHo, all with a strong, thriving, young demographic. There are eight major hospitals in the area, with a total of approximately 4,000 beds. They include the following: Kaiser Permanente Los Angeles Medical Center, Cedars-Sinai, Hollywood Presbyterian Medical Center, Los Angeles County Hospital, UCLA Medical, and USC Medical Hospitals. These facilities draw tens of thousands of highly-skilled residents to the area.
Netflix just announced a new lease to take all 327,913 square feet of the Hudson Pacific’s “EPIC” at 5901 Sunset Blvd., just a little over a mile from the property, continuing the strong future employment base for Wilcox Courtyard Apartments.
One of the owners of the property is a California licensed real estate broker affiliated with Berkadia Real Estate Advisors Inc., and is the listing agent.
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
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