A luxury multifamily property in the growing Warner Center community of Los Angeles is on the market. The 28-unit townhome development is being listed by Walker and Dunlap for $16.5 million, or approximately $589,285.71 per unit. Currently, the property is owned by Los Altos, Calif.-based Interstate Equities Corporation, which purchased the property in 2017 for $11.5 million.
Located at 6737 De Soto Avenue, the property was built in 2005 and totals 42,376 square feet. The development offers a unique three-story design with plenty of floor space and balconies. According to the listing, the property features three-bedroom units that are 62 percent larger than average units in the Warner Center neighborhood at 1,530 square feet. The average unit size in the submarket is approximately 946 per square foot. Additionally, the units rent for $3,600 per month.
“The COVID-19 pandemic has undoubtedly altered a large portion of the population’s day-to-day needs. The need for an extra bedroom is no longer limited to a roommate and expecting parents but is now often seen as the space where residents will conduct their business and earn a living, the offering memorandum states.
In addition, the property offers potential buyers an added investment opportunity as lease rates continue to climb. With two recent leases turned over at a $728 premium due to recent interior upgrades, the units represent an increased rental rate of approximately 25 percent. Overall, multifamily rental rates in the region have increased more than 10 percent over the past 12 months.
“The Property offers a straightforward path to upside as the most recent lease-trade-outs represent a 25 percent premium to the average achieved rent at the property and 29 percent higher on average than those unit’s prior lease. With market rents continuing to climb, Warner Center Townhomes offers an incoming investor the opportunity to realize 170 basis points of growth between current and market yields.” the offering memorandum states.
The townhome community also benefits from its close location to a variety of retail, dining and entertainment options. According to the listing, more than 3.7 million square feet of retail space, and more than 500 retailers, are within just one mile of the property. It is also within close proximity to Interstate 101, providing easy access to West Los Angeles, Thousand Oaks and Tri-Cities.
Warner Center is a result of the larger 2035 Warner Center plan, an initiative by the City of Los Angeles to bolster commercial development in the neighborhood. Just to the West of Warner Center Townhomes, the growing Uptown District will soon be home to a master planned community complete with office, hotel, retail and residential developments. Warner Center is also home to the 1.1 million square-foot Westfield Topanga Mall. An additional shopping center called the 2035 Promenade is also underway in Warner Center. Once complete, the project will offer more than one million square feet of retail, dining, entertainment and hotel amenities.
Walker and Dunlap did not respond to a request for comment.
