Three Hot Zip Codes, Three Multifamily Picks: Adner Realty Group Rounds Up the Best Apartment Buying Opportunities in Hollywood, Silver Lake and Inglewood

We analyze the multifamily inventory for sale across Los Angeles and over the years have developed our "favored" neighborhood for apartment buyers.

What makes a favored neighborhood?  Those that offer a combination of good returns and opportunity for future rent appreciation; that are centrally-located, close to jobs, shopping and entertainment.  They are not the "platinum" neighborhoods of Beverly Hills or Santa Monica, but the "infill" parts of the city.

Here we focus on three of our preferred zip codes: 90046 (Hollywood), 90026 (Silver Lake/Echo Park) and 90302 (Inglewood).  Let's see what's for sale.

1.  1600 North Martel Avenue, Los Angeles, CA 90046 - Hollywood

$1,800,000 - 8 units - 5.92% cap rate

90046 (click to enlarge)

Located in the heart of Hollywood, near Runyon Canyon and "Rock and Roll Ralphs", this building comprises 8 classic, character units that appeal perenially to renters.  Furthermore, a new owner can apply for Mills Tax Act status, whereby they will receive 50 - 80% tax abatement if they do not modify the property. This "historical" status will limit further improvements, but with the tax-advantaged cost savings, why mess with a good thing?

2.  950 Edgecliffe Ave, Los Angeles, CA 90026 - Silver Lake

$3,388,000 - 12 units - 5.65% cap rate 

90026 (click to enlarge)

This 12-unit asset benefits from (1) the high-quality rental pool in the Silver Lake market; and (2) the fact that units are not subject to rent-control.  There is little new rental construction in Silver Lake, a much sought-after, collegiate / post collegiate / young professional neighborhood close to Downtown, and a new owner can capitalize on the limited rental supply and appreciating rents. Well-located in a "South of Sunset" neighborhood, close to Hollywood and Santa Monica Boulevard, a major corridor to Westside neighborhoods.

3.  815 Victor Avenue, Inglewood, CA 90302 - Inglewood

$3,175,000 - 27 units - 6.13% cap rate

90302 (click to enlarge)

This 27-unit building is located in the non-rent controlled City of Inglewood across La Cienega Boulevard from the LAX / Westchester neighborhoods. As salaries have declined, renters have migrated from high-cost beachside neighborhoods such as Marina del Rey to more affordable, more central neighborhoods such as Inglewood. The result is low vacancy (2%) and high returns (over 6% cap rate) for this "bread and butter" asset.
 
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