Closed | Tremendous Value Add Opportunity in South Gate
Josh Barut of Lyon Stahl is pleased to have closed 9800 Madison Ave, a 5-Unit apartment building in the red-hot Mid-Cities/Southeast La submarkets.
This property sold at $840,000.
This offering represents a tremendous Value Add Opportunity. Each unit has major rent upside and the building sits on a large 8,559 square foot lot.
The land boasts a Walk Score of 88 and sits a short walk from Downtown South Gate, which contains a bevy of grocery and convenience stores, restaurants, and shopping and entertainment options. Moreover, the property is (2) lots down from Madison Elementary School and there are over (10) schools within a 1-mile radius of the property, including South Gate High School (.4 mi), Montara Avenue Elementary (.2 mi), and Victoria Avenue Elementary (.2 mi). These entities will continue to surge population growth- the greatest demand driver in the multi-family market.
The property consist of (5) Single-Level Units and features a Unit mix of (1) 2-Bed/1-Bath House w/ a Garage, (1) 2-Bed/1-Bath Unit, and (3) 1-Bed/1-Bath Units.
Currently, the offering is running a CAP Rate of 3.77% and a GRM of 16.12, with Market Rents imputing a Market CAP Rate of 6.80% and a Market GRM of 10.64.
In this Southeast LA submarket, the combination of low vacancies, healthy rent growth, below-average prices, and proximity to Downtown has drawn the attention of investors priced out of other parts of LA.
For More Information on this Property:
For Future Listings, Contact:
Josh Barut: Josh.Barut@LyonStahl.com