Norton10-Unit Community in Los Angeles, CA
A diverse, centrally located district, with one of the highest population densities for the city.
Barrier to entry
This property had been placed in the Rent Escrow Account Program (REAP) while operated by the previous owner. Because of this, we were able to acquire the property at a significant discount.
Norton is a historically significant and unique building.
The tenant profile consists of young professionals and blue collar workers who enjoy the central location and convenient access to public transportation.
1037 S Union Dr.
This 10-unit multifamily property was built in 1941, and features studio and one-bedroom apartments, renovated interiors, and unique floor plans.
- Occupancy at takeover 80% 80%
- Value-Add Rent Growth 25% 25%
- Average Annual Sub Market Rent Growth 5% 5%
- Average Sub Market Occupancy 96.3% 96.3%
Miracle Mile is undergoing a transformation. The longtime office hub — bordered by 3rd Street, Highland Avenue, San Vicente Boulevard and Fairfax Avenue — will soon be home to a slew of new mixed-use developments. These properties include luxury rental units and ground-level retail. The museums that line Wilshire Boulevard, the heart of the Miracle Mile, are also getting makeovers. And a new institution, the Academy Museum of Motion Pictures, is scheduled to open there by the end of the year.
Norton is a 1940’s constructed apartment community that contains ten studio and one-bedroom apartments. We were able to secure an exceptionally low entry price due to legal issues between the previous owner and the city, which had resulted in the property being placed in REAP.
Since our purchase at the end of 2019, We’ve been able to remove the property from REAP, start renovations, and complete a refinance.
We expect to exit this project in 5-7 years, with an equity multiple greater than 2.0x and an average annual return of +18%.