ECHO PARK – Rising four stories above Echo Park Avenue, the Art Deco-style apartment building known as The Heights was built in 1929 just as the roaring ’20s gave way to the Great Depression. Now, this towering reminder of previous boom times might become a symbol of the current red-hot real estate market as it is offered up for sale for $7.25 million, according to LoopNet.
The owners of the 29-unit building at 1650 Echo Park Avenue are seeking to join other Echo Park property owners who are cashing in on the strong demand for apartment buildings, including the larger, brick buildings constructed decades ago. Down the block, the 44-unit Del Mor Apartments and an adjacent parking lot were sold at the end of 2013 for $9.275 million. In December 2014, new owners paid $15 million for Jensen’s Recreation Center, which includes 46 apartments above ground-floor shops on Sunset Boulevard.
The marketing material for The Heights says that one of the building’s main selling points is its location in a neighborhood of high-priced real estate, forcing many renters to stay put:
Rapidly increasing cost of homeownership in Echo Park has resulted in tremendous demand for rental housing in the area as housing is still too costly for most renters to become buyers. Within a 1-mile radius of the Property, the median home value is over $633,000 with over 35% of homes valued at $750,000 or higher (Nielsen). Based on a 20% down payment plus monthly property taxes and insurance, the average home has a total monthly cost of approximately $2,885/month. This is approximately 130% higher than projected market rents at the Heights at Echo Park.
A newly renovated studio apartments in the building is currently going for $1,650 a month, according to a Craiglist ad.
The imposing apartment building, which towers above one and two-story homes and apartments, was commissioned by Rosina Pauli, an adjutant in the Salvation Army, who lived two blocks away from the property.
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