2605 Michigan Ave, Los Angeles, CA 90033
INVESTMENT OVERVIEW
This 9,600 SF RD1.5-1-CUGU zoned site will be delivered with Ready-to-Issue (RTI) permits for a 5-story, 50-unit multifamily development in the fast-growing Boyle Heights / East LA submarket. The project includes 50 thoughtfully designed one-bedroom units, making it well-suited for high-demand, transit-accessible rental housing in a walkable urban corridor.
Situated in one of Los Angeles’ most historically underserved yet rapidly evolving communities, 2605 Michigan Ave offers a rare opportunity to invest in a fully entitled project at the center of a broad revitalization effort. The site enjoys close proximity to the Metro Gold Line, USC Medical Campus, Downtown LA, and the Arts District, providing excellent connectivity to major employment and cultural hubs.
With RTI permits in hand, developers can move directly into construction, bypassing the costly and time-consuming entitlement process.
The project is particularly attractive to developers pursuing affordable housing, ESG-aligned investments, or voucher-based lease-up strategies.
Strong rental demand in the 90033 ZIP code, combined with the project’s efficient layout and scale, supports multiple exit options — from a stabilized long-term hold to a rapid lease-up and resale. The zoning and density also make the project a strong candidate for 100% affordable housing conversion, which may qualify for ED1 expedited processing and additional public incentives.
As the City of Los Angeles continues to prioritize infill development near transit, 2605 Michigan Ave represents a shovel-ready, low-risk opportunity to deliver urgently needed housing in a high-absorption submarket with long-term upside.
2605 Michigan Ave
Project Overview
| Project Information | |
|---|---|
| Gross Building Area | 27,427 SF |
| Build-able Units | 50 Unit 50 (1-Bedroom) |
| Stories | 5 |
| Net Rentable | 21,448 SF |
| Units Size SF | ~425 |
| Average Residential Rent PSF | $5.34 |
| Lot Size | 9,600.5 SF |
| Average Monthly Rent | $2,289 |
| Legal Description | |
| Site Address | 10715 S Western Ave,. Los Angeles, CA 90047 |
| Zoning | RD1.5-1-CUGU |
| APN | 5179-021-021 |
2605 Michigan Ave
Price Analysis
Gross building area
27,427 SF
Build-able Units
50
STORIES
5 FLOORS
LOT SIZE
9,600.5 SF
NET RENTABLE AREA
21,448 SF
| COST SUMMARY | |
|---|---|
| Acquisition Costs: | $2,500,000.00 |
| Operating Expenses at 5% of Acquisition | $125,000.00 |
| Construction Costs: | $6,993,885.00 |
| Total Development Costs | $9,493,885.00 |
| Plan #1 : DISPOSITION | ||
|---|---|---|
| Projected Property Value: | $14,790,461.54 | |
| Disposition Cap Rate: | 6.50% | |
| Sales Proceeds at Disposition: | ||
| Projected Sale Value: | $ 14,790,461.54 | |
| Broker Commission: at 6.0% of Sale Price | $ 887,427.69 | |
| Closing Cost: at 0.5% of Sale Price | $ 73,952.31 | |
| Net Sale Proceed | $ 13,829,081.54 | |
| less: Project Cost | $ 9,493,885.00 | |
| Disposition: Net Profit | $ 4,335,196.54 | |
| ROI | 45.66% | |
| PLAN #2: HOLD | |
|---|---|
| OPERATING PERFORMANCE | |
| Scheduled Lease Revenue | $ 1,373,400.00 |
| less: Manager Unit | $ 27,468.00 |
| less: Vacancies & Bad Debt at 3.00 % | $ 41,202.00 |
| less: Operating Expenses | $ 343,350.00 |
| Total | $ 412,020.00 |
| Residential Cash Flow | $ 961,380.00 |
| Net Operating Income | $ 961,380.00 |
| Cap Rate on Total Cost | 10.13% |
2605 Michigan Ave
Project Plans
Boyle Heights
(City Terrace / Eastern Downtown LA Submarket)
Neighborhood
605 Michigan Ave is located in East Los Angeles, within the City Terrace area, immediately east of Downtown Los Angeles. The property benefits from close proximity to major transportation corridors, including Interstate 10, U.S. Route 101, and State Route 60, providing efficient access to Downtown LA, the Arts District, Vernon, and the San Gabriel Valley.
Public transportation is readily available via nearby Metro bus routes and the Metro A Line (formerly Gold Line), offering direct rail connectivity to Downtown Los Angeles, Union Station, and Pasadena. This central location supports strong commuter demand and reduces tenant reliance on personal vehicles.
The surrounding area is characterized by a dense, renter-oriented population with a strong concentration of working-class households. Household sizes are generally larger than the citywide average, and the area demonstrates consistent demand for affordable and workforce housing. The neighborhood’s demographic profile supports stable occupancy and long-term rental demand, particularly for efficiently designed one-bedroom units.
Housing stock in the immediate area consists primarily of older multifamily properties, small apartment buildings, and single-family homes, with limited new development due to zoning constraints and infill conditions. As a result, newly built, RTI-approved projects benefit from scarcity value. Rental housing dominates the market, reinforcing demand for professionally managed multifamily assets and supporting long-term hold strategies.
East Los Angeles offers a practical, urban lifestyle centered around local retail corridors, neighborhood services, and employment access rather than luxury amenities. Residents benefit from proximity to major job centers in Downtown LA, the Arts District, Vernon, and the USC Medical District, making the area especially attractive to workforce and service-sector tenants. The neighborhood’s central location continues to drive absorption as housing costs rise closer to Downtown.
The property is served by the Los Angeles Unified School District (LAUSD), with multiple public elementary, middle, and high schools in the surrounding area, as well as access to charter and magnet programs. Educational infrastructure supports long-term residency for family households and contributes to neighborhood stability.
Nearby amenities include local grocery stores, neighborhood retail, restaurants, medical facilities, and public parks. Larger employment, entertainment, and cultural destinations are easily accessible within minutes, including Downtown Los Angeles, the Arts District, and Union Station. Continued public and private investment in East Los Angeles infrastructure supports future appreciation and long-term livability.
