Prepared Exclusively for Danny K. Bahng
February 2026
The LAAA Team (Los Angeles Apartment Advisors) at Marcus & Millichap specializes exclusively in multifamily investment sales throughout Greater Los Angeles. With over 501 closed transactions totaling more than $1.6 billion in sales volume, the team has built one of the most active apartment practices in Southern California. The LAAA Team maintains a proprietary database of over 40,000 qualified multifamily investors, including a dedicated network of 1031 exchange buyers actively seeking replacement properties.
Backed by the Marcus & Millichap platform – the largest commercial real estate brokerage in North America by transaction count – the LAAA Team combines local market expertise with national reach. Half of the team’s apartment listings sell in under five weeks, and the team’s median days on market of 34 days reflects a pricing methodology and marketing approach designed to generate competitive offers quickly.
The LAAA Team is proud to present 409 S Boyle Avenue, a 32-unit rent-stabilized multifamily property situated in the heart of Boyle Heights, one of Los Angeles’ most transit-connected eastside neighborhoods. Originally constructed in 1924 as a two-story wood-frame building, the property comprises 30 studios and 2 one-bedroom units across approximately 15,862 square feet of rentable area. As an RSO asset with vacancy decontrol under Costa-Hawkins, the building offers a buyer predictable in-place cash flow with the ability to reset rents to market upon unit turnover – a meaningful advantage across a 32-unit rent roll with diversified lease expirations.
What distinguishes this asset from comparable offerings is the depth of capital investment already completed by the current ownership. Over the past several years, ownership has executed more than $400,000 in building system upgrades – including a full 400-amp electrical service with 32 individual 60-amp subpanels (finaled September 2025), a 151-window dual-pane changeout to NFRC-certified units, and a solar hot water system – materially reducing deferred maintenance risk for a new buyer. Electric metering is individually separated and confirmed, with tenants responsible for their own usage. Additionally, the property holds a Plan Check-approved attached ADU entitlement (approved December 2024) with a second detached ADU application pending, providing a buyer with permitted density upside that requires no entitlement timeline or risk.
From a market perspective, Boyle Heights continues to benefit from its immediate proximity to Downtown Los Angeles – just 1.5 miles from the Arts District across the LA River. The property sits a seven-minute walk from the Metro E Line at Mariachi Plaza Station, carries a Walk Score of 84, and is anchored by LAC+USC Medical Center, one of the largest public hospital campuses in the nation with over 9,600 employees within 1.4 miles. The submarket has recorded rent growth exceeding 3% year-over-year, supported by a 4.9% vacancy rate and limited new multifamily supply. For buyers seeking a stabilized, capex-light entry point into a transit-rich, DTLA-adjacent corridor with organic rent growth, 409 S Boyle Avenue represents a compelling basis.
Boyle Heights is one of Los Angeles’ oldest and most culturally rooted neighborhoods, situated directly east of Downtown across the LA River. The area has maintained a distinct residential identity defined by its walkable streetscape, dense housing stock, and strong community institutions – while benefiting from the economic gravity of a rapidly expanding DTLA just 1.5 miles to the west. The Arts District, now one of LA’s highest-rent submarkets, sits across the river and continues to drive spillover demand into adjacent eastside neighborhoods where rents remain meaningfully lower. For multifamily investors, Boyle Heights occupies a particular position: an established renter community with deep housing demand, low vacancy, and proximity to major employment centers that few comparably priced submarkets can match.
The property’s transit access is a defining attribute. Mariachi Plaza Station on the Metro E Line is a seven-minute walk – approximately 0.3 miles – providing a direct one-seat ride to Santa Monica, Long Beach, and connections throughout the Metro system. LA Metro’s continued investment in transit-oriented development at Mariachi Plaza and Soto stations, along with a proposed Metrolink station at LA General Medical Center, signals sustained infrastructure commitment to the corridor. The Walk Score of 84 (“Very Walkable”) and Transit Score of 69 (“Good Transit”) reflect the neighborhood’s dense service network. LAC+USC Medical Center – one of the nation’s largest public hospital campuses with over 9,600 healthcare workers – sits 1.4 miles from the property, serving as a primary employment anchor.
Boyle Heights’ rental market fundamentals support the investment thesis. The submarket has recorded year-over-year rent growth of 3.13%, driven by limited new multifamily supply and sustained demand from a population that is 76.7% renter. The housing vacancy rate sits at 4.9%, well below the threshold that would indicate softening conditions. Median household income of $56,623 is below the LA City average, but the concentration of voucher-assisted and workforce tenants creates a reliable, subsidy-supported demand base. New construction in the area remains constrained by regulatory overlays and community resistance, which limits the competitive supply pipeline and insulates existing assets from rent compression.
| Walk Score | 84 (“Very Walkable”) |
| Transit Score | 69 (“Good Transit”) |
| Nearest Metro | Mariachi Plaza Station (E Line), 0.3 mi |
| Nearest Freeway | I-5, I-10, I-101 (all within 1 mi) |
| Major Employers | LAC+USC Medical Center (1.4 mi, 9,600+ workers) |
| Grocery | Food 4 Less, local markets within 1 mi |
| Parks | Hollenbeck Park (0.3 mi) |
| Median HH Income | $56,623 |
| Renter Percentage | 76.7% |
| Population | 81,701 |
The property’s combination of stable current income, renovation upside, and development optionality positions it to attract interest across multiple buyer segments, supporting competitive pricing and a manageable marketing period.
| Address | 409 S Boyle Ave, Los Angeles, CA 90033 |
| APN | 5174-002-014 |
| Year Built | 1924 |
| Units | 32 (30 Studios, 2 One-Bedrooms) |
| Building SF | 15,862 |
| Avg Unit SF | ~496 |
| Stories / Buildings | 2 Stories / 1 Building |
| Construction | Wood Frame |
| Lot Size | 17,832 SF (0.41 Acres) |
| Zoning | [Q]R4-1-RIO-CUGU |
| TOC Tier | 3 |
| Community Plan | Boyle Heights |
| Council District | CD 14 – Ysabel Jurado |
| Parking | 12 Surface Spaces (0.38/unit) |
| Flood / Fire | Outside Flood Zone, Not in VHFHSZ |
| System | Condition / Status | Year |
|---|---|---|
| Electrical | 400-amp, 32 × 60-amp subpanels – NEW | Finaled 9/2025 |
| Windows | 151 dual-pane NFRC-certified – NEW | Permitted 5/2021 |
| Solar Hot Water | Active solar hot water system | Finaled 6/2018 |
| HVAC | Individual 15K BTU direct vent units (multiple replacements) | 2001–2020 |
| Roof | Flat, Class A/B torch-down | 2009 (17 years old) |
| Plumbing | Original – condition unknown | 1924 |
| Water Heaters | Solar hot water system | 2018 |
| Metering | Electric: individual (confirmed); Gas/Water: master metered | – |
| Laundry | No on-site laundry | – |
| Parking | 12 surface spaces (0.38 per unit) | – |
| ADU Entitlements | Attached ADU – PC Approved; Detached ADU – Pending | 12/2024 |
| Item | Status |
|---|---|
| Rent Control | LA RSO (pre-1978, vacancy decontrol applies under Costa-Hawkins) |
| TOC Tier | 3 (Transit-Oriented Communities) |
| Soft-Story Retrofit | NOT Required (confirmed LADBS) |
| ADU Entitlements | Attached ADU – Plan Check Approved 12/2024; Detached ADU – Application Pending |
| Code Enforcement | 2 Cases on File (nature unknown – verify during due diligence) |
| Certificate of Occupancy | 0 on file (typical for pre-war construction) |
| Seismic Zone | Zone 4 (City of LA standard) |
| Flood Zone | Outside Special Flood Hazard Area |
| Fire Zone | Not in Very High Fire Hazard Severity Zone |
| Date | Grantor / Grantee | Sale Price | $/Unit | $/SF | Notes |
|---|---|---|---|---|---|
| 05/2012 | Orion Ventures LLC → SRD Commercial Group LLC | $1,915,500 | $59,859 | $121 | Current owner |
| 07/2007 | East Valley Capital Partners → Orion Ventures LLC | ~$2,135,000 | $66,719 | $135 | Multi-property deal ($4.15M combined) |
| 2001 | Goldstein → East Valley Capital Partners | Unknown | – | – | – |
| 1997 | Cal Bay Mtg Group → Goldstein | $385,000 | $12,031 | $24 | – |
The current owner, SRD Commercial Group LLC (Danny Bahng), acquired 409 S Boyle Avenue in May 2012 for $1,915,500 – a basis of $121 per square foot and $59,859 per unit – during the post-Great Financial Crisis recovery period when multifamily pricing in secondary LA submarkets remained well below peak levels. The prior owner, Orion Ventures LLC, had purchased the property in July 2007 as part of a multi-property transaction valued at $4.15 million, near the peak of the pre-recession cycle.
Since acquiring the property, Danny has executed a disciplined capital improvement program totaling more than $400,000 in building system upgrades – including a full 400-amp electrical service (finaled 2025), 151 dual-pane NFRC-certified windows, a solar hot water system (finaled 2018), and multiple HVAC unit replacements. Ownership has also secured ADU entitlements, with an attached ADU receiving Plan Check approval in December 2024 and a detached ADU application pending. At the suggested list price of $3,200,000, the property reflects approximately 67% appreciation over 14 years of ownership – driven by a combination of submarket rent growth, completed capital improvements, and entitled development upside.
| # | Address | Units | Yr Built | SF | Sale Price | $/Unit | $/SF | Cap % | GRM | Sale Date | Notes |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 223 N Breed St | 32 | 1927 | 12,064 | $2,795,000 | $87,344 | $232 | 7.13% | 8.93 | 01/2026 | Value-add; 7 vacant; 62% rent upside |
| 2 | 323 N Soto St | 40 | 1929 | 10,364 | $2,500,000 | $62,500 | $241 | 12.34%* | 4.86* | 09/2024 | Court sale; distressed |
| 3 | 2221 Michigan Ave | 32 | 1926 | 9,229 | $2,500,000 | $78,125 | $271 | 11.45% | 5.07* | 09/2024 | Court sale; distressed |
| 4 | 301 S Boyle Ave | 27 | 1908 | 13,884 | $3,025,000 | $112,037 | $218 | 5.47% | 8.45 | 05/2024 | Debt assumption; same street |
| 5 | 456 S Breed St | 24 | 1972 | 18,857 | $3,600,000 | $150,000 | $191 | 2.39% | – | 04/2024 | Elevator; 27 parking; newer |
| 6 | 571 Fairview Ave | 38 | 1964 | 12,006 | $4,995,000 | $131,447 | $416 | 5.90% | – | 03/2024 | Pool; master-metered; mid-century |
| 7 | 2649 Marengo St | 24 | 1989 | 29,096 | $5,145,000 | $214,375 | $177 | 6.01% | 9.71 | 06/2025 | NOT RSO (1989); mixed BD |
| Non-Distressed RSO Average (#1,4,5,6) | $120,207 | $264 | 5.22% | 8.69 | |||||||
| Non-Distressed RSO Median | $121,742 | $225 | 5.69% | 8.69 | |||||||
*Comps #2 and #3 are court-ordered portfolio sales. Cap rates and GRMs reflect in-place income at sale, not stabilized operations.
Comp 1: 223 N Breed St – Most Comparable
This is the strongest comparable in the dataset. Breed St is nearly identical to the subject – 32 studios in a 1927 building in Boyle Heights, sold as a value-add opportunity. It traded at $87,344/unit and a 7.13% cap rate in January 2026 after 93 days on market, closing at 87.5% of its original $3.195M list price ($2.795M sale). The key distinction is condition: Breed had 7 vacant units at sale, rents 62% below market, and requires renovation throughout. The subject’s completed $400K+ in capital improvements, 94% occupancy, separately metered electric, and plan-check-approved ADU entitlements justify a 15% premium over Breed, placing the subject at $100,000+/unit.
Comp 4: 301 S Boyle Ave – Geographic Match
Located on the same street just five blocks north, 301 S Boyle is the closest geographic comp. It traded at $112,037/unit in May 2024 – a 27-unit, 1908-vintage building with a 1-bedroom unit mix that commands higher per-unit pricing than studios. The sale included a $1.47M debt assumption from JPMorgan Chase. The higher per-unit price reflects the larger unit sizes (687 SF average vs. the subject’s ~496 SF). The subject should trade at a modest discount to this comp due to its studio product, partially offset by its newer vintage, larger unit count, and recent capital upgrades.
Comp 6: 571 Fairview Ave – Larger / Mid-Century
Fairview is a 38-unit, 1964-built building with 37 singles and amenities the subject lacks – a pool, 16 parking spaces, and mid-century design appeal. It traded at $131,447/unit and a 5.90% cap rate in March 2024 after 63 days on market. A 15–20% discount from Fairview’s per-unit price implies $105,000–$112,000/unit for the subject, consistent with the pricing range derived from other comps.
Comp 5: 456 S Breed St – Different Product
This 24-unit, 1972-built building with an elevator, 27 parking spaces, and a 1BD/2BD unit mix is a fundamentally different product. It traded at $150,000/unit in April 2024 at a 2.39% cap rate – the lowest in the dataset – reflecting deeply below-market rents. The newer construction and superior parking ratio place this comp well above the subject’s competitive set. It serves as a ceiling reference only.
Comp 7: 2649 Marengo St – Non-RSO Outlier
Marengo is a 1989-built, non-RSO building with a mixed bedroom count and 46 parking spaces. Its $214,375/unit price point reflects a product class entirely different from the subject. Its 98.9% SP/LP ratio is notable as a data point on buyer appetite for Boyle Heights multifamily at higher price points.
Comps 2 & 3: 323 N Soto St & 2221 Michigan Ave – Distressed
These two properties were court-ordered sales from the same multi-property portfolio liquidation, both closing on September 30, 2024. Soto (40 units) sold at $62,500/unit and 52.6% of list; Michigan (32 units) sold at $78,125/unit and 58.1% of list. These represent floor and distress pricing – not arm’s-length market value. The subject is not distressed and should not be priced against these transactions.
Boyle Heights multifamily is actively trading, with seven closed comps identified in the past 12–18 months and three on-market listings in the immediate submarket. Non-distressed SP/LP ratios of 78–99% suggest 10–15% negotiating room from list price is standard for this product type. Cap rates for non-distressed RSO product range from 5.5% to 7.1%, with the median at 5.69%. Days on market for non-distressed sales averaged 91 days, indicating a functioning but not frenzied market.
| # | Address | Units | Yr Built | SF | List Price | $/Unit | $/SF | Cap % | GRM | DOM | Notes |
|---|---|---|---|---|---|---|---|---|---|---|---|
| A | 2107 E Cesar E Chavez Ave | 30 | 1927 | 12,352 | $3,795,000 | $126,500 | $307 | 7.23% | 8.35 | 35 | Mixed-use (27 res + 3 commercial) |
| B | 124 N Westmoreland Ave | 30 | 1927 | 22,163 | $4,350,000 | $145,000 | $196 | 7.29% | 8.16 | – | All studios; trading 15%+ below list |
| C | 2900 E 1st St | 26 | 2026 | 13,680 | $9,495,000 | $365,192 | $694 | 5.71% | 15.20 | 102 | NEW CONSTRUCTION – not comparable |
The most relevant on-market benchmark is 124 N Westmoreland Ave in Koreatown – a 30-unit, all-studio, 1927 RSO building asking $145,000/unit ($4.35M). Broker intel from Taylor Avakian at Lyon Stahl (February 16, 2026) indicates buyer activity is “below list 15%+” with buyers “interested and writing,” implying an expected trade around $123,000/unit ($3.7M). Koreatown is a materially stronger submarket than Boyle Heights – higher rents, stronger tenant demand, better retail amenities – so the subject should be discounted 15–20% from Westmoreland’s expected trade price. That produces $98,000–$105,000/unit, consistent with the $100,000/unit suggested list price derived from closed comp analysis.
2107 E Cesar Chavez Ave is a mixed-use property with 27 residential units and 3 commercial spaces, making it an imperfect multifamily comparison. However, the residential component – 27 furnished studios in a 1927 building – is relevant. The asking price of $126,500/unit with a 7.23% cap rate on actual income provides useful context for studio product pricing in the 90033 zip code. 2900 E 1st St is a 2026 new construction project listed at $365,192/unit and should be excluded entirely from the subject’s competitive set.
| # | Address | Dist. | Rent | SF | $/SF | Yr Built | Condition | Notes |
|---|---|---|---|---|---|---|---|---|
| 1 | 308 S Boyle Ave | 0.1 mi | $1,500 | 400-500 | $3.33 | Pre-1930 | Renovated | Granite, hardwood, stainless; 0.2 mi to E Line |
| 2 | 571 Fairview Ave | 0.6 mi | $1,895 | ~350 | $5.41 | 1964 | Renovated | Pool, laundry, A/C; range $1,495-$1,995 |
| 3 | 2707 Pomeroy Ave | 0.9 mi | $1,575 | 460 | $3.42 | Pre-1960 | Renovated | Hardwood, granite, new windows, balcony |
| 4 | 207 N Savannah St | 0.7 mi | $1,595 | 500 | $3.19 | 1932 | Renovated | Seismic retrofit complete; value-add |
| 5 | 2448 Boulder St | 0.5 mi | $1,495 | 352 | $4.25 | 1964 | Renovated | Laminate, newer appliances; pkg $99/mo |
| 6 | 444 S Chicago St | 0.3 mi | $1,750 | ~600 | $2.99 | Pre-1940 | Renovated | Larger studio; higher rent due to size |
| 7 | 529 S Lorena St | 1.1 mi | $1,650 | 525 | $3.14 | Pre-1960 | Updated | East BH / Lorena corridor |
| 8 | 234 N Chicago St | 0.3 mi | $1,975 | ~450 | $4.39 | Pre-1930 | Renovated | Plank-wood, granite, tile; highest in BH |
| 9 | 2019 City View Ave | 0.8 mi | $1,475 | ~400 | $3.69 | Pre-1950 | Updated | Lower end; less renovation scope |
| 10 | 1849 Sichel St | 1.5 mi | $1,695 | 350 | $4.84 | Pre-1960 | Renovated | Lincoln Heights; secondary market |
Low end: $1,475–$1,500/mo (Comps #1, #9) – Renovated but basic finishes in smaller buildings without premium amenities. This range reflects the floor for a renovated studio in an older Boyle Heights building.
Mid range: $1,575–$1,750/mo (Comps #3, #4, #5, #6, #7) – Standard renovation scope with granite counters, LVP or hardwood-style flooring, updated kitchen and bath. This is where the majority of comparable evidence clusters.
High end: $1,795–$1,975/mo (Comps #2, #8) – Higher-quality finishes, stronger micro-locations, or larger units. These represent top-of-market for renovated studios in older buildings.
| Scenario | Rent/Mo | $/SF | Basis |
|---|---|---|---|
| Conservative | $1,500 | $3.33 | Floor set by Comps #1, #5, #9 |
| Moderate (Recommended) | $1,625 | $3.61 | Supported by Comps #3, #4, #6, #7; reflects Metro proximity |
| Aggressive | $1,800 | $4.00 | Supported by Comps #2, #8; higher-end finishes required |
The moderate scenario at $1,625/mo is supported by the weight of comparable evidence. The subject’s advantages – Metro proximity at 0.3 miles from the E Line, recent systems upgrades that reduce CapEx risk for a renovating buyer, and 32-unit scale that supports professional management – offset its disadvantages, including the 1924 vintage, C+ location grade, and unknown plumbing condition.
Important context: these are asking rents, not achieved rents. Actual lease-up may require one to two months of vacancy loss or modest concessions. RSO vacancy decontrol under Costa-Hawkins allows rent reset to market on turnover, but the turnover rate depends on tenant demographics. With approximately 37% of the building occupied by Brilliant Corners voucher tenants, turnover on those units may be lower than average.
| Type | Count | Avg SF | Avg Current Rent | Monthly Total | Annual Total | Market Rent | Market Annual |
|---|---|---|---|---|---|---|---|
| Studio (0BD/1BA) | 30 | ~496 | $1,359 | $40,770 | $489,240 | $1,625 | $585,000 |
| 1BD/1BA | 2 | ~500 | $1,763 | $3,525 | $42,300 | $1,875 | $45,000 |
| Total | 32 | ~496 | $1,384 | $44,295 | $531,540 | $1,641 | $630,000 |
In-place GSR from rent roll: $524,339/yr. Occupancy: 93.75% (30 occupied, 2 vacant). ~12 Brilliant Corners voucher tenants (37.5%). Units 113, 114, 209, 214 recently leased at $1,550–$1,650, confirming achievable market rents.
| Line Item | Annual Amount | Per Unit | % EGI |
|---|---|---|---|
| Gross Scheduled Rent [1] | $524,339 | $16,385 | – |
| Less: Economic Vacancy (5%) [2] | ($26,262) | ($821) | – |
| Other Income [3] | $910 | $28 | – |
| Effective Gross Income | $498,987 | $15,593 | 100.0% |
| Operating Expenses | |||
| Property Taxes [4] | $38,720 | $1,210 | 7.8% |
| Insurance [5] | $18,672 | $583 | 3.7% |
| Utilities (Water/Sewer/Gas/Trash/Common Electric) [6] | $80,528 | $2,517 | 16.1% |
| Repairs & Maintenance [7] | $38,400 | $1,200 | 7.7% |
| On-Site Manager [8] | $30,000 | $938 | 6.0% |
| Contract Services & Supplies [9] | $21,417 | $669 | 4.3% |
| Administrative & Legal [10] | $8,143 | $254 | 1.6% |
| LAHD Registration [11] | $6,615 | $207 | 1.3% |
| Marketing [12] | $4,000 | $125 | 0.8% |
| Management Fee (5% of EGI) [13] | $24,949 | $780 | 5.0% |
| Reserves [14] | $12,800 | $400 | 2.6% |
| Other (Permits, State Tax, Misc) [15] | $7,771 | $243 | 1.6% |
| Total Operating Expenses | $292,015 | $9,125 | 58.5% |
| Net Operating Income | $206,972 | $6,468 | 41.5% |
[1] In-place rents from February 2026 rent roll. 30 occupied, 2 vacant. Includes Unit 116 at $250/month (anomaly – verify with owner).
[2] 5% economic vacancy applied. Physical vacancy is 6.25% (2 of 32 units), but ~37% of tenants are Brilliant Corners voucher recipients, providing reliable payment that supports a lower economic vacancy assumption.
[3] RSO/SCEP passthroughs only ($330 RSO + $580 SCEP from 2024 T-12). No laundry or parking income currently collected.
[4] Reassessed at 1.21% of $3,200,000 purchase price. Seller currently pays $30,725 on a Prop 13 assessed basis ($2.42M assessed value).
[5] Seller actual. Within Tier 4 benchmark range ($550–$800 per unit).
[6] Seller actual verified across 2023 and 2024 operating data. Master-metered gas and water; individually metered electric (tenants pay their own). Includes common area electric.
[7] Tier 4 benchmark ($900/unit) plus pre-1940 age adjustment ($300/unit) equals $1,200 per unit. Recent capital expenditures reduce deferred maintenance risk.
[8] California law (Civil Code Section 17995.1) requires an on-site manager for buildings with 16+ units. Budget includes a free unit (~$1,625/month market value) plus a modest salary.
[9] Seller actual: $19,917 in supplies plus $1,500 in landscaping. Consistent across 2023 and 2024.
[10] Administrative ($4,748) plus legal and professional ($3,395). Seller actuals, both within benchmark ranges.
[11] LAHD RSO registration and SCEP fees. Partially passable to tenants under allowable passthroughs.
[12] Tier 4 benchmark at $125 per unit. Seller shows $0 – a buyer needs a turnover advertising budget.
[13] 5% of Effective Gross Income. Seller currently pays 8.6% ($42,806) to Lilah Management. Market rate for professional third-party management of a 32-unit Boyle Heights property is 4–5%.
[14] $400 per unit for a pre-1940 building. Base benchmark of $450 per unit reduced by $50 credit for recent major capital expenditures.
[15] Permits ($2,023) plus California franchise/entity tax ($2,923) plus miscellaneous ($2,825).
Property taxes reassessed at 1.21% of each purchase price. Pro forma cap rate uses stabilized NOI of $317,407 (32 units at market rents).
| Purchase Price | Cap Rate | Pro Forma Cap | $/Unit | $/SF | GRM |
|---|---|---|---|---|---|
| $3,500,000 | 5.81% | 8.97% | $109,375 | $221 | 6.68x |
| $3,400,000 | 6.02% | 9.26% | $106,250 | $214 | 6.48x |
| $3,300,000 | 6.24% | 9.58% | $103,125 | $208 | 6.29x |
| $3,200,000 | 6.47% | 9.92% | $100,000 | $202 | 6.10x |
| $3,100,000 | 6.72% | 10.28% | $96,875 | $195 | 5.91x |
| $3,000,000 | 6.98% | 10.66% | $93,750 | $189 | 5.72x |
| $2,900,000 | 7.26% | 11.07% | $90,625 | $183 | 5.53x |
| $2,800,000 | 7.56% | 11.51% | $87,500 | $177 | 5.34x |
The suggested list price of $3,200,000 ($100,000 per unit) is anchored primarily by comparable sales in the Boyle Heights submarket. The most comparable closed sale – 223 N Breed St, a nearly identical 32-studio building that traded in January 2026 at $87,344 per unit – serves as the pricing floor. The subject commands a 15% premium over Breed due to completed capital improvements ($400,000+ in electrical, windows, solar, and HVAC), superior occupancy (94% vs 78%), entitled ADUs (Plan Check approved December 2024), and separately metered electric. This premium is further supported by 301 S Boyle Ave at $112,037 per unit (same street, larger units) and the median non-distressed sale price of $121,742 per unit.
The buyer-normalized cap rate of 6.47% at list price reflects a realistic Day 1 operating cost structure including reassessed property taxes, professional management, an on-site manager per California law, and replacement reserves. This cap rate falls within the non-distressed comp range of 2.39% to 7.13% (median 5.69%). The expected sale range of $2,900,000 to $3,100,000 accounts for the 10–15% negotiating discount standard in this submarket.
The pricing is further contextualized by the on-market benchmark at 124 N Westmoreland Ave in Koreatown – a 30-unit, all-studio, 1927-built RSO building asking $145,000 per unit, with broker intel indicating an expected trade at approximately $123,000 per unit. Applying a 15–20% Boyle Heights location discount to Westmoreland’s expected trade yields $98,000–$105,000 per unit, consistent with the suggested list.