A mixed-use building in the popular Los Angeles neighborhood of Koreatown has recently hit the market with an asking price of $10.8 million, or about $400 per square foot. The property is being listed by Kidder Mathews, and offers 26,974 square feet of office and retail space, as well as potential for redevelopment.
The property consists of two two-story buildings located at 800-814 S. Vermont Avenue and 2974 W. 8th Street. The buildings were constructed in 1933 and 1953 and last traded hands for an undisclosed price in 2012 when it was acquired by the Yamin Family Trust, a local family trust associated with Youssef Yamin.
The property is located in the highly walkable Koreatown neighborhood, which also sees more than 61,282 vehicles per day. Just a short walk from Wilshire Boulevard, the property is near a variety of entertainment venues, shopping, hotels and restaurants. Additionally, the property is located near several metro stations, including the Wilshire/Vermont Station, the Wilshire/Normandie Station and the Wilshire/Western Station.
Currently, the buildings are occupied by a diverse mix of long term tenants, with most on month-to-month leases. The property’s largest tenant is King’s Pawn Shop, which takes up 6,544 square feet of space and has been at the property for 36 years. In total, current tenants provide a net operating income of $538,298 annually.
However, the property could also offer potential redevelopment opportunities. Current zoning would allow for a developer to build up to 86 residential units on the site.
”While there is strong cash flow, Vermont and 8th presents an excellent repositioning opportunity with the potential to increase rents in a market experiencing rapid growth and development,” the listing states.
According to Kidder Mathews, the Los Angeles multifamily market is seeing rental rates trend upward as new construction deliveries and vacancies are trending downward. A 2021 fourth quarter multifamily market report from the brokerage firm shows that vacancies in Los Angeles’ multifamily market report declined nearly 40 percent year-over-year to 3.5 percent. New construction also declined approximately 3.5 percent in 2021, with 12,372 units being built in the region. With limited supply, average rental rates reached $2,043 in 2021 compared to $1,923 in 2020.
Kidder Mathews did not respond in time to comment on this story.
