Iconic Sells The Commonwealth Apartments
12-Unit Apartment Property can be Renovated or Redeveloped
Iconic Investments announces the sale of The Commonwealth (441 S. Commonwealth Ave.), a renovation/development opportunity in LA's Koreatown submarket, for $2.6 million. This mid-century property features 10 one-bedroom/one-bath units and two two-bedroom/two-bath units.
Iconic Principal Peter Strauss represented both the seller, who had owned the property since 1969, and the buyer. The buyer’s offer was non-contingent from day one, and the buyer will be responsible for the earthquake retrofit work. The property sold at a 16.21 GRM and a 3.36% Cap Rate. Iconic received seven offers ranging from $2.4 million to $2.6 million, which was the list price.
The Commonwealth’s marketing campaign focused on the property’s potential. In light of all the new residential development underway in Koreatown, the buyer can renovate the property and reposition it as a well-appointed alternative to brand-new construction or the buyer can build a new building. The 10,201-square-foot lot is zoned R4-2, which allows for no height restriction and a 6 to 1 floor to area ratio. Therefore, by right, a 25-unit apartment building -- plus the possibility of a density bonus -- can be constructed on the site.
Iconic Investments is a Los Angeles-based boutique commercial real estate brokerage firm focusing on multi-family properties of 15 to 100 units throughout Los Angeles in all different sub-markets. Iconic represents multi-family property owners in dispositions, acquisitions, and 1031 exchanges.
