One of the first new structures to rise around South Park after the entire neighborhood was leveled on this day back in 1906, the Gran Oriente Filipino at 106 South Park is on the market for the first time in 95 years.
Constructed in 1907, the three story building was purchased by a group of Filipino merchant marines and immigrants for $6,000 in 1921 and became a 24-room residential hotel and meeting place for the community.
Technically a mix of 15 single room occupancy units and 9 tourist hotel rooms with a total of 8 baths, the ground floor of the building includes an office, large community room and communal kitchen outfitted with a wall of small refrigerators for individuals use.
And with 11 of the 24 rooms across the top two floors of the building currently occupied, the remaining owners of the Gran Oriente Filipino are now asking $3.2 million for the hotel (which will not be delivered vacant).
x533 @ 95 years > 6.8% return…..eh, not great (though w/o considering the operating income/loss, which, of course, could change things a lot)
Operating income/loss is the key.
If fully rented what would the units generate in monthly income? Expenses are probably small. It does not look like a lot of work has been done on the building and I assume it is paid off.
Stock guys claim that the market, over the very long-term, returns around 9% annually including dividends.
Factoring in net rental income on top of the 6.8% return in price appreciation this property may have outperformed the stock market.
Wow. I’ve walked by there 300 times and had no idea it was a operating SRO.
Same.
Just look at much of the park’s regular ‘clientele’ and it is obvious there is an SRO nearby.
agree. south park is mostly a homeless park, and city not willing to do anything about it
Dude, being homeless is not the same as living in an SRO.