PROJECT SITE AND DESCRIPTION | After years of physical neglect and multiple lawsuits, 439 N. Ogden was a ideal project for revitalization. This 5,535 SF residential rental property consisted of 4 two bed/one bath units. The property sits on a 6,000 SF lot in the Melrose – Fairfax district in close proximity to the outdoor shopping center, The Grove.  At the time of purchase two units were occupied and two units were vacant.  The occupied units were renting for $1700-$1900 per month while similar units in the area rented for $2200 per month (www.rentometer.com) .  After making an unsolicited offer, which was initially rebuffed, we returned for a second attempt which resulted in a consummation of a deal.

STRATEGY Over the past decade the area has become populated with college educated, upwardly mobile, young professionals with disposable income.  The available apartments have for the most part not been modernized, leaving a huge demand to be met.  Our strategy was to vacate the remaining two units and complete an extensive rehab, bringing to market high-end, modern units while maintaining the original charm.  The building underwent a complete seismic upgrade including underpinning the whole foundation.  Also the 4 units that were originally 2 bed/1 bath became 2 bed/2 bath each with a separate office.

RESULTS | After extensive renovations involving tearing the building down to the studs, replacing all systems and re-configuring floor plans, the lower units have rented for $3,200 while the upper units have rented for $3,400. This is 50% higher than average rents in the area.  Total gross annual income of $158,400 was achieved.

COMPLETED PROJECT

ORIGINAL CONDITION