Just Listed: A Fully Parked 18 Unit Apartment Building Steps From Downtown Los Angeles
If you are looking for an apartment building for sale in Westlake or anywhere Downtown adjacent, 412 and 416 Union Dr. is an 18 unit property listed at $2,100,000 that is fully parked on site, which almost nothing in this submarket can say. Current income supports a 6.21 percent CAP rate on day one, and the rent roll sits 66 percent below the stabilized number, which takes the CAP rate to 10.42 percent once the units are turned.
I have walked a lot of buildings in the 90017 zip code over the last eight years, and the conversation with buyers always lands on the same two things: how far below market the rents are, and where the tenants park. Most of the pre war stock west of the 110 was built for streetcar riders, so parking means circling the block. When I first stood on the south lot at 412 Union Dr. and counted the striped stalls, then walked around to the north lot and the east drive aisle, I knew that detail would carry this listing. Every competing building I surveyed for the rent comparables advertises street parking only or no parking at all. This one parks every unit on site.
The property
412 and 416 Union Dr. are two adjacent two story walk up buildings constructed in 1925 on a single 16,442 square foot parcel zoned R4. Together they hold 18 units totaling approximately 10,950 gross square feet: 16 studios and 2 one bedroom units, every one with its own full kitchen and bath. The buildings are operated as one asset with shared parking: a striped lot along the full southern edge of the site, a second lot along the northern boundary with an accessible stall, and a drive aisle with additional spaces on the east side. Interiors carry original hardwood flooring, ceiling fans, wall heaters, and generous closets. Several units have already been updated with new cabinetry, counters, flooring, and bath fixtures, which sets the finish standard for the rest of the property.
The numbers
The list price is $2,100,000, which works out to $116,667 per unit and $191.78 per square foot. The two most recent comparable sales in the 90017 zip code, 819 Beacon Ave at $128,333 per unit and 372 Columbia Ave at $160,833 per unit, average $144,583 per unit. That puts this offering roughly 19 percent below the comparable average on a per unit basis.
Current gross potential rent is $219,695 against a stabilized projection of $366,000. Net operating income moves from $130,358 to $218,772 on a stabilized basis. The gross rent multiplier falls from 9.56 to 5.74. Three units are vacant at close of escrow, one of them the former on site manager's unit, so a buyer can begin renovating and releasing the day the keys change hands rather than waiting on turnover.
Why parking changes the math
In Westlake and City West, the typical 1920s walk up offers nothing: tenants park on the street and hope. That shows up in the leasing numbers. A building that can offer a space leases faster, keeps tenants longer, and supports a rent premium that street parked buildings cannot touch. When I pulled rent comparables for the offering memorandum, 503 Union Dr. advertises street parking only, 749 Garland Ave advertises no parking, and 1517 W 4th St. advertises no on site parking. Against that field, a fully parked building is not a nice to have. It is the reason a renovated studio here can command the pro forma rent.
For an investor, parking is also the hedge. If the rent upside takes longer than planned, the building still leases ahead of its neighbors. If the market softens, the building still has the one amenity that cannot be added to a 1925 lot.
The location
The property sits in City West, the pocket of the 90017 zip code immediately west of the Downtown Los Angeles core and east of MacArthur Park. The skyline is the backdrop in every aerial. Tenants draw on employment in the Financial District, the Civic Center, and the medical and academic institutions along Wilshire Boulevard, with the 110 and 101 freeways and the Metro network minutes away. The surrounding renter base is dense, the housing stock is mostly pre war and mid century walk up product, and new supply of workforce priced studio housing is thin.
What a buyer gets on day one
An 18 unit building with in place income at a 6.21 percent CAP rate. Three vacant units to renovate immediately. A proven renovation standard already visible in several turned units. A rent roll with 66 percent upside to the stabilized projection. And the only fully parked building among its direct competitors.
How I would approach it
Start with the three vacant units. Bring them to the finish level already established in the property and lease them at the pro forma rent. Use those leases as the proof point for the remaining 15 units as they turn naturally. With 16 studios, the renovation scope per unit is small and repeatable, which keeps the capital program predictable. The parking lots require nothing beyond ordinary upkeep and immediately support the leasing story.
Questions owners ask
Is a fully parked building really worth more in Westlake?
Yes, and the rent comparables show why. Every competing building surveyed for this listing advertises street parking only or no parking at all. A building that can offer a space leases faster and holds a rent premium, and parking is the one amenity that cannot be added to a 1925 lot later.
How much rent upside is there at 412 Union Dr.?
Current gross potential rent is $219,695 and the stabilized projection is $366,000, an increase of about 66 percent. That takes net operating income from $130,358 to $218,772 and the CAP rate from 6.21 percent to 10.42 percent at the list price.
What does the unit mix look like?
Eighteen units across two adjacent buildings: 16 studios and 2 one bedroom units, each with one bath, a full kitchen, hardwood floors, and a ceiling fan. Three units are vacant at close of escrow, including the former on site manager's unit.
Request the offering memorandum, the rent roll, and the full comparable set by calling or texting 310.405.7632, or by visiting the listing page. If you own a building nearby and want to know what the market would pay for it today, go straight to the contact page.
Chandler Rockwell, Broker, The Rockwell Group, DRE 02080782
Own units in Los Angeles? Call or text Chandler at 310.405.7632 or send the address and I will tell you what it is worth as it sits today, tenants and all.
Buyers are advised to independently verify the accuracy of all information, including rent control status, zoning, square footage, permits, and financial projections, prior to close of escrow.
