138 N Soto St

A 20-unit value-add apartment building at 138 N Soto St in Boyle Heights, Los Angeles, offered at $3,095,000 ($154,750 per unit, $222.28 per SF) at a 6.82% cap on $210,953 of current NOI. The property is 90% occupied, and the pro forma at market rents shows a 9.25% cap and $286,315 NOI.

The two-story, Class C building was built in 1930 and has 13,924 SF on an 8,913 SF LAR4 lot (APN 5180-002-021). The unit mix is 11 studios, 6 one-bedrooms, and 3 two-bedrooms. Over $200,000 has gone into building renovations, and nearly half the units are renovated. Some units have hardwood flooring, stainless-steel appliances, large kitchens and closets, and wall air conditioning. Gas and electricity are separately metered, there is an on-site laundry facility, and an on-site manager handles daily operations and routine repairs. Unit 105 is the manager's unit and unit 201 is vacant.

Current gross scheduled rent is $353,470 against $137,475 in expenses. Average rents are $1,392 for studios, $1,274 for one-bedrooms, and $2,165 for two-bedrooms, compared with market rents of $1,600, $1,950, and $2,300. That gap gives roughly 20% rental upside, and the one-bedrooms show the widest spread. The GRM is 8.76 at current rents and 7.12 at market. The marketing materials model a 25% down payment ($773,750) with a new $2,321,250 loan at 6.25%, 30-year amortization, due 2031. On that basis cash-on-cash is 5.10% now and 14.84% at market rents, with debt coverage of 1.23 and 1.67. Six sales comparables, ranging from 10 to 18 units, show $143,500 to $193,800 per unit and caps of 5.70% to 8.42% where reported.

The property is just south of Cesar E Chavez Ave and west of Evergreen Ave, immediately east of Downtown Los Angeles. It is within walking distance of the Metro E Line Soto Station, with access to the 5, 10, 60, and 101 freeways. Soto St, Cesar E Chavez Ave, Whittier Blvd, and 1st St are the nearby commercial corridors. Nearby are Ross Valencia Community Park, Evergreen Recreation Center, Hollenbeck Park, Food 4 Less, Walgreens, Mariachi Plaza, and Adventist Health White Memorial Hospital. Walk Score is 83, Transit Score 67, and Bike Score 56. Boyle Heights has roughly 80,000 to 85,000 residents, about 75% of them renters, and 287,003 people live within three miles. The Boyle Heights Community Plan was approved in 2024, and a 123-unit mixed-use building on S Soto and affordable projects such as Lorena Plaza and Los Lirios are in the pipeline. The Los Angeles 2026 vacancy forecast is 4.7%, against 5.3% nationally.