Multifamily Monday: Silver Lake/Echo Park

Going into May, the Silver Lake/Echo Pack submarket is still showing an overall slight decline in multifamily values. Year-over-year sales data for the trailing 4 quarters shows a 2.7% decrease in price per square foot and a slight (1.1%) increase in price per unit. Though it's been a rough go for Silver Lake/Echo Park, we hope that rising vaccination rates and LA County's move into the yellow tier will continue to invigorate the social and nightlife of this trendy neighborhood, bringing new tenants and rising values in the second half of the year. 

Average Price Per Square Foot: Trailing four quarters averaged $383 vs $393 for the same period in 2020.

Average Price Per Unit: Trailing four quarters averaged $274,358 vs $271,349 for the same period in 2020.

Average Capitalization Rate: Trailing four quarters averaged 4.20% vs 3.93% for the same period in 2020.

Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero; over the last 3 months, however, the 5-year and 10-year Treasury rate have increased 42 and 57 basis points respectively. This has caused an increase in interest rates for both five- and 10-year fixed loans.