578 Stepney Street

Kidder Mathews is pleased to present 578 Stepney St, a 9-unit apartment community in Inglewood, California. The property is offered at $2,899,999, or $322,222 per unit and $353 per SF.Built in 1987, the property consists of two-story buildings with 8,208 SF of rentable area on an approximately 20,000 SF (0.46-acre) lot. The unit mix is eight 2-bedroom/1.5-bath townhome-style units of approximately 975 SF each and one 1-bedroom/1-bath unit of approximately 600 SF. The lot is large for 9 units, and recent changes to California law allow additional accessory dwelling units (ADUs) by right. Under SB 1211, a buyer may add up to 8 detached ADUs, plus up to 2 ADUs converted from non-living space inside the existing buildings. Because the property is near qualifying transit, the new ADUs may be built two stories tall and need no added parking. This creates a path to as many as 17 units on the site by converting carports into 2-story ADUs and the development of a 2,750 SF vacant rear yard, resulting in a pro forma cap rate of 8.7% at $241,176 per unit and $311 per SF. The property is about 1.5 miles from SoFi Stadium and about 2 miles from Intuit Dome, in one of Los Angeles County's most actively redeveloping submarkets.