Description

Presenting 427 S. Bonnie Brae Street for sale, in the Westlake submarket of Los Angeles. Bonnie Brae Apartments was constructed in 1961 with 3 floors of apartments over an on-grade parking garage with access from both the front and back of the building. At first impression when walking through the property, it's evident that the building was well built and has good bones. Located on Bonnie Brae St. just north of 6th Street, with Alvarado Blvd. to the West and Union Ave. to the East, the property features 36 apartment units. The unit mix is comprised of 10 studios, 23 1-bed/1-bath units, and 3 2-bed/2-bath units. The improvements are 25,680 square feet, offering tenants large and spacious units. The front of the property is inviting and has an excellent street presence, leading to a secured access lobby and intercom system. Just past the lobby is a large, open-air courtyard that can lend itself to many uses such as; lower units facing the courtyard can have their own private patios, refurbishing of pool, large deck with seating, tranquil water features, or a kid's playground.The of the major benefits of this property is the attractive in-place financing that can be assumed. At 4.04% interest only fixed until December 2027, new ownership will achieve a 6.75% cash-on-cash return day-1. The total yearly debt service is $139,704 in comparison to current rates at 5.90% which would be $204,022 - a difference of $64,318 per year. Over the remaining life of the loan new ownership will save $289,431. The loan to value is a little higher for the initial term, however, by factoring in the debt savings the LTV is in line with today's market. In addition, a Buyer will also have a lower principal balance in December 2027 when it comes time to refinance.