Little Tokyo Residential Hotel 325-329 E 1st St 38 Room Hotel Los Angeles, CA 90012 For Sale

The Little Tokyo Residential Hotel is a well-positioned mixed-use property located in the heart of the vibrant and historic Little Tokyo neighborhood of Downtown Los Angeles. This three-story building spans approximately 14,100 sq. ft. and offers a rare blend of residential and commercial income opportunities.
The second and third floors comprise 38 single-room occupancy (SRO) units, designated as a Residential Hotel under Los Angeles Ordinance 179868.
Each unit features a private sleeping area with access to shared bathroom, shower, kitchen, and laundry facilities — designed for long-term tenancy and community-style living.
The ground floor includes:
Two highly successful and long-established restaurant tenants anchor the ground floor, both of which are iconic local dining destinations that attract consistent daily foot traffic and contribute significantly to the property's visibility and income stability.
One vacant retail space, offering a possible lease-up opportunity to boost income.
Currently, 12 of the 38 rooms are leased to month to month tenants under the Rent Stabilization Ordinance (RSO), generating consistent monthly revenue. As additional rooms are leased in compliance with Residential Hotel regulations (minimum 30-day tenancy), there is significant cash flow upside.
Furthermore, a future reconversion to traditional hotel operations may be possible by pursuing an approval process with the Los Angeles Housing Department (LAHD) and other city agencies, providing potential flexibility and repositioning upside for a savvy investor.
RESIDENTIAL HOTEL:
Unlike traditional hotels that serve short-term or overnight guests, a residential hotel provides long-term accommodations in a hotellike setting. Units are typically single-room occupancies (SROs) with shared bathrooms and kitchens, catering to residents who stay for 30 days or more.
In Los Angeles, residential hotels are regulated under City Ordinance No. 179868 and protected by the Rent Stabilization Ordinance (RSO), ensuring tenant rights, rent control, and housing stability.