Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $2.85 million sale of a nine-unit apartment property located at 821 S. Gramercy Drive within the Koreatown submarket of Los Angeles. The property was 66 percent vacant upon close of escrow, presenting significant upside potential for the new ownership.
Principal Kimberly R. Stepp and Associate Len Kay of Stepp Commercial represented the seller, a California-based family trust, as well as the buyer, a Los Angeles-based private investor. The price per unit was just under $317,000.
“Koreatown is one of the most desirable rental submarkets in the Los Angeles area,” said Kay. “With six of the units delivered vacant at close of escrow, once renovated and leased up, the asset is poised to offer a 10.1 percent cash-on-cash return to the new ownership given the strong rental market in this neighborhood, despite the pandemic.”
Built in 1991, the two-story property includes eight two-bedroom units and one one-bedroom unit. It also features controlled access and 17 subterranean parking spaces.
Located in the heart of Koreatown, the asset is within walking distance to many trendy restaurants, nightlife venues and shops. It is also one mile from the Wilshire/Normandie Metro Station, and provides easy access to downtown Los Angeles and the 10 and 101 freeways.