Newish Downtown LA Rentals Command $115 Million
JPMorgan Chase Snatches Up 240-Unit Wakaba in City's Hip Little Tokyo Neighborhood
A 4-year-old Los Angeles mid-rise apartment tower in Little Tokyo sold for almost $500,000 per unit, a price consistent with other recent sales in the hip neighborhood.
JPMorgan Chase agreed to pay $115.8 million, about $482,000 per unit, for Wakaba, a seven-story, 240-unit building at 232 E. Second St., according to public records. The luxury complex is about 93% occupied, and the price translates into an initial annual yield of about 4.6%, CoStar data shows.
California-based Sares Regis Group sold Wakaba, and most recently paid $86.7 million, about $517,000 a unit, for The Preston Miracle Mile, a 168-unit building a mile or so away on Wilshire Boulevard. That deal closed last month.
Wakaba offers a mix of studio to two-bedroom apartments with stainless steel appliances. Amenities include a swimming pool, patio and rooftop terrace. The residential tower is close to the emerging arts district and downtown Los Angeles. It’s also near the city’s Skid Row neighborhood, which is plagued by crime and homelessness.
Little Tokyo is home to celebrated noodle shops, art galleries and other nightlife attractions. The city has been encouraging redevelopment of its empty warehouses and other properties in the surrounding area.