1597 W 37th Street, Los Angeles, CA 90018

The Ben Lee Group is pleased to present 1597 W 37th Street, a 2025 ground-up new construction asset in the Exposition Park neighborhood of Los Angeles. Totaling approximately 7,341 rentable square feet across three fully furnished units and 27 beds - each with its own private bathroom - the property features premium finishes throughout - quartz countertops, stainless steel appliances, tiled showers with glass enclosures, new flooring, and in-unit washers and dryers - minimizing near-term capital requirements and maximizing tenant appeal.

At $395 per square foot, the acquisition basis represents a significant discount to current replacement cost for comparable new construction in Los Angeles. This pricing dynamic creates a structural competitive advantage - new entrants cannot deliver a comparable asset at a lower cost basis, effectively limiting the threat of supply-driven rent compression. For investors, this translates to a more defensible asset value and greater long-term income stability.

The property operates under a master lease guaranteeing full occupancy with 5% annual rent escalations, providing investors with immediate, structured cash flow and no day-to-day management obligations. Under the lease structure, the tenant assumes responsibility for utilities, maintenance, and property operations - significantly reducing landlord exposure and delivering a more predictable, low-touch income stream. In-place rents are further supported by meaningful upside to market, offering investors a clear path to enhanced yields upon lease maturity.

The current 6.04% cap rate offers a premium yield relative to conventional RSO multifamily assets trading at compressed rates across Los Angeles, with direct access to the Expo/Western Metro Station providing tenants connectivity to Downtown, Mid-City, and the Westside.

Beyond its strong in-place cash flow, the property offers compelling tax advantages, with potential eligibility for 100% bonus depreciation under current legislation. Prospective investors are encouraged to consult the listing agents regarding a cost segregation feasibility study to fully assess and optimize these accelerated depreciation benefits.