Los Angeles herald., 1905-08-28
NINTH STREET CORNER
IS SOLD FOR $125,000
BUSINESS PROPERTY SELLS AT
st25o A FOOT
Hamburger Realty and Trust Company
DIsposes Of Location at an Advance
Of $4,000 In Thirty Days After
Purchasing II

An important sale has been reported
by w. 3. Merwin of the southwest cor
ner Of Ninth and Hill streets to II. w.
Frank of the London Clothing company
for the Hamburger Realty and Trust
company during the past week, the
property being 100 feet on Hill street
by 1859 feet to an alley on Ninth street.
The price paid was $125,OOO, or valua-
tion of $3.50 front foot for the Hill
street frontage, the property being i'm
proved with three cottages Of nominal
value.
D. A. Hamburger, speaking of the
transaction last night, said:
LESS than a month ago this lot was
purchased from the prior owners for
$4,000, and now, in less than thirty
days, 1t has found a purchaser at an
advance of $50, or almost 33 1-3 per
cent. This property's commercial valu-
alton today is $159,00O, at which price
we believe 1t can be turned prior to
January 1, so that in my opinion Mr..
Frank has a great bargain in his piece
of property at the price he paid We
are the owners of forty feet opposite
on Ninth street, inside property, which
we would not part with at less than
$1,000 a foot, and at this ratio his 159
feet on the other side of the street is
worth s15OOOO.
Ninth Streets Future
"That Ninth street is to be the best
cross street in Los Angeles within the
next ten years is my personal belief
and before the expiration of that period
of time this very corner will change
hands for double present price. There
is no conception in the minds of the
people of Los Angeles of the prospective
value of business property.
1.-The income that 1t will return is
what property is worth. If this lot was
improved by stores facing Ninth street
it would give eight stores that could
be readily rented today at $50 month.
The two upper floors could be rented
for $3.50 month, making an income of
$4,000 year, and deducting $4,000 for
taxes, insurance and repairs you will
have 51s per cent net on the in
vestment. With the growth of
the city, the increase Of rental
values, as that section builds up,
will insure the income making proper
tionate increase as valuations advance,
this being the basis of real estate
values. And until property reaches
such high valuation that it will not pay
per cent gross in returns values will
continue to improve with the city's
growth and prosperity.
with the advent of our store on
Eighth and Broadway it is safe to say
that values will increase so per cent
over present market prices. as has been
similarly demonstrated in New York
by r. H. Macy & Co. They purchased
the ground on Thirty-fourth street and
Sixth avenue at a time when the most
important retail store farthest north
was Twenty-third street. They placed
their building, at a cost OF $S'ooO'Ooo'
eleven blocks farther out, on property
which they bought at very low figure,
and created a center in New York sec
ond to none. They are now enjoying
the fruits of their labor in ten to one
increase on what they paid for their
property, and it is our expectation to
accomplish the same results in Los
Angeles"