LOS ANGELES – December 31, 2014 – Optimus Properties, LLC has completed the $7 million sale of a six story, 55 unit, 100 percent occupied, rent-controlled brick building located at 3715 West First Street in the gentrifying Los Angeles neighborhood of Koreatown.
“First Street is a wonderful asset that we brought back to life after having fallen into disarray. We bought the property right after it had exited REAP (the Rent Escrow Account Program) and spent nearly $650,000 in improvements,” said Kamyar Shabani, a Principal of Optimus Properties, LLC.
The buyer and seller were represented by Janet Neman, Senior Managing Director of Charles Dunn. The closing cap rate was a 5.46 percent and the price-per-square-foot was $174.
Built in 1927, the building features a grand lobby, elevator and sprawling views of downtown Los Angeles. The property is a mix of studio and 1 bedroom apartments. Approximately 36 percent of the units have been updated with luxury finishes, including new kitchens with quartz countertops and glass tile backsplash, hardwood laminate floors and walk-in closets.
“We look forward to making further investments in Koreatown, with First Street having been our flagship investment in Koreatown. First Street provided our investors with an approximately 70% return on their investment and we hope to replicate those returns on other Koreatown deals,” said K. Joseph Shabani, a principal of Optimus Properties, LLC.
Optimus Properties, LLC, located in Los Angeles, California, was founded by K. Joseph Shabani and Kamyar Shabani and employs a disciplined investment approach focused on value creation in multifamily properties throughout Los Angeles.