After recently hitting the market, a fully entitled development opportunity would allow a potential buyer to construct a 369-unit multifamily building in Los Angeles’ City West neighborhood. The property, which is listed by Mark Tarczynski and Adam Tischer of Colliers International, is currently home to a multi-tenant medical office building that could also provide a buyer with additional income.
The 1.92-acre property is located at 1111-1125 West 6th Street and 1330 West 5th Street. The project, also called 6th & Bixel, was entitled by the current owner, Jade Enterprises. While Colliers declined to share guidance pricing for the property, public records show that the property was acquired in 2013 for $20.9 million.
The project site is fully entitled for a seven-story multifamily asset with 100 percent of the units at market rate. The project would span 348,430 square feet of floor area and could also include 13,000 square feet of ground floor retail space.
The 120,000 square-foot medical office building on site is currently 76 percent leased, according to Colliers. The building offers a net operating income of approximately $1 million. All leases, however, have landlord-only termination rights.
The property is located just outside Los Angeles’ Central Business District, near the PIH Health Good Samaritan Hospital campus. The area is home to a variety of retail and dining amenities as well, and is also near Interstate 110.
“Various design options exist to enhance the area that lies just across the street from the 408-bed Good Samaritan Hospital. 6th & Bixel is a part of the cluster of prestigious commercial and multifamily properties that are breaking ground or within the development pipeline west of the 110 Freeway bordering core downtown Los Angeles. These developments will serve as a bridge between the major economic hubs of downtown LA and the Wilshire Corridor,” the offering memorandum states.
Currently, downtown Los Angeles has approximately 4,100 residential units currently under construction, according to the offering memorandum. These include the 376-unit TenTen Wilshire; The Grand, a 436-unit project; a 438-unit development and 8th & Figuroa; and more.
Despite the new construction, vacancy in Los Angeles’ multifamily market continues to decline, with current rates at 5.8 percent. At the same time, absorption is up, with Colliers showing more than 600 units becoming occupied each month. Currently, rental rates in Los Angeles average $2,250 per month.