Stepp Commercial is pleased to present Wicklow Common, an elegant 1920’s classic in the heart of the burgeoning Westlake District.
Due to the impact of COVID-19, the property is being offered on a ‘distressed’ basis. The opportunity for a buyer with intimate knowledge of owning and operating vintage buildings is to bring the asset to full occupancy and collections, while taking advantage of a high-leveraged assumable loan of $7,500,000 (81.3% LTV) at 3.70% fully amortized and fixed for seven years. Upon stabilization, the total potential return on down payment will be 12.4% with current rents, and 15.8% with all units at market rents.
The four-story building contains 48 units and offers light and airy California floor plans wrapped in a vintage brownstone. 27 of the 48 units have been extensively remodeled with all-new kitchens featuring stone counters, stainless-steel appliances and modern kitchen cabinetry, wood-style plank flooring throughout, and new bathrooms.
The common areas have also been upgraded with new interior and exterior paint and light fixtures, and new front door key fob entrance.
At a GRM of 10.8 and cap rate of 5.5%, and requiring only 18.7% down payment, Wicklow Common is truly a rare multifamily opportunity.
THE BEST OF WESTLAKE DISTRICT LIVING
Wicklow Common resides in a "Walker's Paradise" with a walkscore of 95. It is located one block east of MacArthur Park and is just a five-minute walk to the Metro Red Line Station. The property offers breathtaking vistas of the beautiful skyline and an easy commute to the 500,000 jobs located in Downtown Los Angeles.
STRONG MARKET FUNDAMENTALS
As gentrification pushes east from Koreatown, south from Silverlake and Echo Park, and West from DTLA, this pocket of the eastside is one of the last affordable rental markets and has not surprisingly been receiving considerable developer interest. The Westlake District is experiencing a wave of new construction with over 3,000 new apartment units, over 1,000 new hotel units and several hundred thousand square feet of commercial and retail space either under construction or planned.
Its central location, relative affordability, and strong transit links to major employment have been market drivers for both the investor community as well as renters, which make up 95% of the population.
5.5% year one cap rate and 10.8 GRM
Extensive remodel recently completed
27 of the 48 units renovated
12.4% return on equity
Excellent assumable financing – less than 20% down payment
Located within an Opportunity Zone
Desirable urban infill location, just one block from Metro Station
"Walker's Paradise" with a walkscore of 95