For the first time since it was constructed, a 26,000 square-foot family-owned property in downtown Los Angeles has been placed on the market, offering a mix of residential and retail uses. The property is being listed by NAI Capital Commercial Real Estate Services’ Greg Maradai and Mark O’Brien, with an asking price of $10.65 million, or about $409 per square foot.
Located at 1316 S. Los Angeles Street in the Garment District, the property has been owned by a local family entity since it was built in 1915. Currently, the property offers 24 one-bedroom apartments on the second and third floor as well as three ground floor retail units totaling 6,667 square feet. Additionally, the property contains a finished basement totaling more than 6,000 square feet.
“Where we are, this is the only building that has multifamily plus retail, so we’ve been getting a lot of traction from clothing manufacturers that love the idea of their own building where they can have the retail down below,” Maradai said. “Plus, there’s a full basement for storage, which is very rare in that market, and they have the income of 24 apartment buildings upstairs. We’ve had a tremendous reaction from the market.”
According to Maradai, the property has been fully occupied by residential tenants since it was built. Currently, apartment units are being rented at $1,500 per month and retail space is leased at $2 per square foot. While it has not been renovated since 1993, the property also offers upside rent potential for an investor looking to upgrade the building.
The property also benefits from its location. The property is the only multifamily asset available for sale in the immediate area. It is also just off of Interstate 110 and close to Interstate 10. The Garment District is also home to an abundance of retail options and close to popular attractions in Downtown Los Angeles.
“Downtown is such a strong residential market. Even though a lot of units are coming online at once, they all get absorbed immediately. We’re finding ourselves with very low vacancy. That being said, this is the only multifamily building in the Garment District that is south of Pico,” Maradai said.
According to the listing, similar nearby properties have sold for an average price of $320 to $488 per square foot. For instance, an 11,497 square-foot office building at 1001 Crocker Street sold in December for $5.3 million, or about $469 per square foot. An additional 10,674 square-foot office building at 1013 Crocker Street sold around the same time for $5.2 million, or about $486 per square foot.
