Los Angeles, CA - Downtown Hotel

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN, newly-constructed, freestanding 1318 Flower Street Hotel investment property in the South Park neighborhood of downtown Los Angeles, California. The tenant, 1318 Flower Street, LLC, has approximately 43 years remaining on their current lease with 2 (10-year) options to extend. The lease features 10% rental increases every 5 years throughout the initial term, growing NOI and hedging against inflation. The ground lease is absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for a passive investor. The offering presents a rare opportunity to acquire land in a dense, infill trade area with significant barriers to entry for new development. The subject property is home to a 43-room, 6-story boutique hotel with parking for 17 vehicles and a rooftop deck, expected to open in 2022.

The hotel is ideally located less than 1 mile from the Los Angeles Convention Center as well as Crypto.com Arena (Staples Center), home of the Los Angeles Lakers basketball team. With millions of annual visitors year-round, these iconic venues significantly increase consumer draw to the immediate trade area and guarantee long-term desirability for the site. In addition, the site benefits from direct on-off ramp access to the Harbor-Santa Monica Freeway Interchange, one of the busiest interchanges in the state averaging a combined 641,000 vehicles per day. Furthermore, the property is less than 10 minutes from the University of Southern California (USC), the largest university in California by enrollment with over 44,000 students, as well as several other institutions of higher education. Nearby universities and schools further increase consumer traffic to the site and boost demand for hotel accommodations. The 5-mile trade area is supported by over 1,320,000 residents and 565,279 employees. Residents within 1 mile of the subject property boast a steady average household income of $87,247.

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Listing ID: a288X000006689bQAA