A 61-unit multifamily portfolio less than one mile from the University of Southern California has recently hit the market. According to a listing from Young Lewin Advisors, the student housing portfolio is available for purchase, with a $22 million asking price, or approximately $360,656 per unit.
Located at 3813 to 3855 Flower Drive, the multifamily portfolio was built in 1920 and spans nine buildings totaling 46,226 square feet of rentable space. In total, the portfolio consists of a 20-unit property, a 12-unit property, a five-unit property, and six four-unit properties on 1.5 acres of land. According to public records, the property is currently owned by an entity associated with Machiavelli Chao, which acquired it in August for an undisclosed amount.
The portfolio includes a mix of unit types, with the 20-unit and 12-unit property each consisting of studios. Both the five-unit and the four-unit properties all include larger floor plans of more than 1,000 square feet, allowing for the potential conversion to a student housing-optimized three-bedroom floor plan. According to the listing, the seller currently has city approval for conversions on 22 of the units, all of which are currently vacant.
“22 units are currently vacant allowing a new buyer to immediately renovate those units in order to raise rents to market by attracting student and/or young professional tenants. The remaining 39 occupied units are protected by the Los Angeles Rent Stabilization ordinance – a new buyer could elect to leave those tenants in place and allow those units to turn over gradually or negotiate voluntary cash for keys move-out agreements with interested tenants to accelerate the turnover process,” the offering memorandum states.
The multifamily portfolio is just 0.3 miles from the main University Park campus of USC and is also in close proximity to the Marshall Business School and the newly constructed Fertitta Hall. The properties are also in close proximity to Exposition Park, a 160-acre park, which is home to the California Science Center, the California African American Museum, the Natural History Museum of Los Angeles County, and the City of Los Angeles Rose Garden. The area is continuing to grow and is home to a variety of residential developments and commercial developments, according to the listing.
“The area surrounding the campus has seen and will continue to see sustained appreciation due to the recently opened LA Metro Exposition Light Rail line, the LAFC Banc of California stadium and the soon-to-be completed $1 Billion George Lucas Narrative Art museum that is currently under construction, the offering memorandum states.
“USC recently completed the $700-million mixed-Use project at the University Village offering major national retailers, open spaces, student housing and innovative academic collaboration spaces. In addition to the above, the offering is located near residential developments such as the Icon Plaza, Tuscany on Fig, Ventus Mixed-Use Development, Hub Los Angeles Coliseum, making this a true path of progress location.”
