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ECHO PARKA P A R T M E N T S
A 28 UNIT, BOUTIQUE TROPHY MULTI-HOUSING COMMUNITY IN
ECHO PARK , CALIFORNIA.
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, California License Number 01385740.
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EXECUTIVE SUMMARY
HFF is pleased to present for sale, Echo Park Apartments (the “Property”), a 28-unit art-deco style multi-housing community situated in the hip and highly sought-after Echo Park submarket of Los Angeles. Built in 1928, Echo Park Apartments boasts a well-balanced unit mix including 15 studios, 12 one-bedroom units, and and 1 two-bedroom unit with several of the units featuring private patios. Current ownership has spent approximately $284,000 renovating the building including the renovation of 11 units featuring high-end interior finishes including refinished hardwood floors, quartz countertops, exposed brick and stainless-steel appliances. New ownership has the opportunity to continue the renovation program throughout the balance of the units and increase rents by a projected 24%.
Located in LA’s hottest submarket, Echo Park Apartments boasts a “Very Walkable” Walkscore designation, with stylish and trendy cafes, restaurants and entertainment venues within walking distance. Echo Park is sandwiched between two of Los Angeles’ most prominent employments centers; Downtown Los Angeles and Hollywood, providing residents with convenient access to over 750,000 jobs. In an area with virtually no new supply and rising apartment demand driven by a growing job base and the rapidly increasing cost of home ownership, Echo Park Apartments is well-positioned to benefit from strong demand for years to come.
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PROPERTY OVERVIEW
PROPERTY ADDRESS 1650 Echo Park Avenue Los Angeles, CA 90026
UNITS 28 + 1 Commercial Space
GROSS SQUARE FOOTAGE ±20,889 (+/-746 sq.ft./unit)
YEAR BUILT 1928
OCCUPANCY 96%
ACREAGE 0.21
APN 5420-028-005
ZONING LARD1.5
1X112 Unit (43%)
STUDIO15 Unit (53%)
2X21 Unit (4%)
UNIT MIX
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UPSIDE THROUGH RENOVATIONS24%
INVESTMENT HIGHLIGHTS
ECHO PARK – THE EPICENTER OF A GENUINE LA EXPERIENCE Echo Park Apartments benefits from Echo Park’s perfect balance of historic and hip influences, created by a continuously evolving arts and restaurant scene. The Property is located on one of Echo Park’s most coveted streets, Echo Park Avenue and just steps north of Sunset Boulevard, a well-known retail and restaurant mainstay of northeast Los Angeles. With a recent influx of young residents and migration of an abundance of restaurants and shops along Sunset Boulevard, Echo Park is a true destination for residents and visitors alike. As home prices and rents rise rapidly in the surrounding areas, Echo Park is siphoning residents from nearby Silverlake and Downtown LA, and has emerged as a “the coolest neighborhood in all of LA”. Additionally, Echo Park Apartments is located within walking distance of two of Los Angeles’ most frequented attractions – the newly revived Echo Park Lake (0.6 miles away) and Dodger Stadium (0.8 miles away).
HISTORICALLY SIGNIFICANTBuilt in 1928 and designed by architect, E.J. Vought, Echo Park Apartments is a building rich with history that serves as a local landmark within the community. This art-deco style building stands out as an impressive monument on the otherwise one and two-story residential street. Echo Park Apartments will continue to be an iconic landmark to the area, and a desirable place to call home as it has for almost 100 years.
20 RENOVATED UNITS*
71%
8 UNRENOVATED UNITS29%
SIGNFICANTLY RENOVATED WITH ADDITIONAL VALUE-ADD POTENTIALCurrent Ownership spent approximately $284,000 in common area and unit interior renovations, achieving rent premiums of as much as +/-$1,400 (130%) for certain unit floor plans. 25% of the units remain in original condition, and new ownership will have the opportunity to renovate the balance of these units, as well as improve the finishes of units previously upgraded by prior ownership to raise rents by a projected 24%.
*9 units were renovated by prior ownership
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DOWNTOWN LOS ANGELES
ANGELINO HEIGHTS
VALERIE ECHO PARK
ECHO PARK LAKE
VONS
MORTON AVENUE
LUCRETIA AVENUE
ECH
O P
ARK
AVEN
UE
SUNSET BOULEVARD
ELYSIAN PARK SILVERLAKE
MASA OF ECHO PARK BAKERY & CAFE
TWO BOOTS ECHO PARK
NAYARIT
STREET LEVEL CAFE
ECHOPLEX
JENSEN REC CENTER
BLUE BOTTLE COFFEE
SAGE VEGAN BISTRO
ECHO PARK CAFE
KINDKREME ECHO PARK
STORIES
CHANGO COFFEEGLOWING JUICES
GOLD ROOM
THE LOST KNIGHT
WOODCAT COFFEE BAR
PATRA BURGERS ON SUNSET
OSTRICH FARM
THE SHORT STOP
GUISADOS
BUTTON MASH
DODGER STADIUM
ECHO PARKA P A R T M E N T S
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PROXIMITY TO JOBSEcho Park is central to LA’s most prominent and thriving employment centers, Downtown Los Angeles, which boasts more than 500,000 jobs. Additionally, within a 30-minute drive, residents can commute to over 900,000 jobs within Los Angeles’ premier employment centers:
ECHO PARK - AN URBAN RENESSAINCEEcho Park’s dynamic environment has embraced the waves of gentrification while maintaining its historical significance. The influx of trendy and high-paying renters has spurred new development in the area, and has attracted numerous award-winning restaurants including the more than 55 restaurants in Echo Park with a 4-star or greater Yelp review, and restaurants such as Pollen, Vanillablack, Freedman’s and Bengee’s Ice Cream which have recently opened within the last 12 months. Notable developments include Champion Real Estate Companies BrickWorks, which will bring 15,000 square feet of trendy, eclectic retail space and a food hall, and Palisades Capital Partner’s $600 million mixed-use development planned for 1111 Sunset Boulevard, to name a few.
Additionally, Echo Park falls into the Enterprise Zone Program, which provides special incentives to business owners to promote the creation of new jobs. The Enterprise Zone designation has made it much easier for new business owners to open up shop in a community where commercial rents have been on the rise in recent years.
EMPLOYMENT CENTER ESTIMATED # OF JOBS SF OF OFFICE
Downtown Los Angeles 500,000 70 million sq. ft.
Hollywood/Miracle Mile/Wilshire District 256,000 31 million sq. ft.
Pasadena 100,000 7.5 million sq. ft.
West Hollywood 32,000 7 million sq. ft.
Century City 24,000 11 million sq. ft.
Beverly Hills 17,000 11 million sq. ft.
TOTAL 929,000 138 million sq. ft.
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AFFLUENT DEMOGRAPHICS SHAPING THE NEIGHBORHOODEcho Park’s job and amenity rich environment has shaped the neighborhood into one of Los Angeles’ most attractive submarkets and has continued to draw a large concentration of young, well-educated professionals:
DISCOUNT TO HOMEOWNERSHIP DRIVING DEMAND FOR APARTMENTSThe competitiveness within the local housing market has continued to drive up median home prices at a faster rate than the City of Los Angeles as well as the nation. Echo Park home values have increased 10.2% over the past year and are projected to rise another 3% over the next 12 months. This rising cost has put homeownership out of reach for many individuals, while renting at Echo Park Apartments presents a much more affordable option to homeownership with a 66% discount to ownership. As such, effective rent growth for apartments over the last five years has averaged 3.5% per year, while simultaneously sustaining an occupancy level floating around 95%.
WALK SCORE 82 OF RESIDENTS
ARE MILLENNIALS
28.54%(3-mile radius)
AVERAGE INCOME$92,538
(1-mile radius)
RENTER OCCUPIED
1-MILE RADIUS
70%
LA COUNTY
52.5%
VS.
ALEXANDRA [email protected]. 310.407.2122CA License # 01994543
BLAKE A. ROGERSManaging [email protected]. 310.407.2138 CA License # 01866591
INVESTMENT CONTACTS FINANCING
HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
hfflp.com
ECHO PARKA P A R T M E N T S
JEFF SAUSESeinor [email protected] License #01852507