Inside Nipsey Hussle’s Blueprint To Become A Real Estate Mogul

Zack O'Malley Greenburg
Zack O’Malley GreenburgForbes StaffHollywood & Entertainment
Senior Editor, Media & Entertainment
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Golden Opportunity Zone: Even as his music career accelerates, Nipsey Hussle—pictured at the 61st Annual Grammy Awards—is focused on his next entrepreneurial move. (Photo by David Crotty/Patrick McMullan via Getty Images)GETTY

The tattered stretch of West Slauson Avenue just off Crenshaw Boulevard in Los Angeles isn’t the first place you’d expect to see a Cadillac Escalade roll up and deliver a Grammy-nominated musician. At the tiny strip mall on the south side of the street, storefronts include an off-brand taco joint, a Boost Mobile outlet and an accountant’s office advertising same-day tax refund advances up to $6,000.

This is where Nipsey Hussle decided to spend a recent Friday morning, and for good reason. His Marathon Clothing store, which peddles Crenshaw hoodies alongside his own music, occupies the corner of the L-shaped plaza. His history here goes back even further—in fact, it’s where he got his name.

“Before we was renting here, I was hustling in this parking lot,” says Nipsey, 33, born Ermias Asghedom. “It’s just always been a hub for local entrepreneurs.”

Change is coming to Crenshaw, and Nipsey is aiming to be on its bleeding edge: This month, Nipsey and business partner Dave Gross swooped in to pay “a couple million” for the plaza. Within 18 months or so, they’ll knock everything down and rebuild it as a six-story residential building atop a commercial plaza where a revamped Marathon store will be the anchor tenant.

In the meantime, a light rail line is rising to link Crenshaw—which, crucially, qualifies as a tax-advantaged Opportunity Zone—to Los Angeles International Airport and other key nodes of sprawling Southern California. The plaza will be among the first to benefit: There’s a brand-new train station under construction just steps away.

Nipsey may not be hip-hop’s biggest name, but he’s certainly among the genre’s most entrepreneurial. His slow-burn career started to catch fire six years ago when Nipsey offered 1,000 copies of his mixtape Crenshaw for $100 apiece—Jay-Z bought 100 copies—and rolled the profits into his label, All Money In. He released just 100 copies of a subsequent offering, Mailbox Money, with a price tag of $1,000.

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“[Nipsey] was not trying to be independent just for the sake of it, but thinking about the benefits of being an independent artist,” says Chris Lyons, who has known Nipsey for several years and runs Andreessen Horowitz’s Cultural Leadership Fund, which counts Nas and Diddy as investors. “The most important thing is his ability to just see where future trends are going and not being afraid to pioneer.”

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Hussle’s Convention: Diddy, Usher, Jay-Z, DJ Khaled and Nipsey Hussle at the Roc Nation Grammy brunch. (Photo by Kevin Mazur/Getty Images for Roc Nation) GETTY

For Nipsey, the hustle started at home. He grew up down the road from the plaza, in what he calls “the worst house on the best block,” cutting grass and shining shoes to make extra cash as a kid before falling in with local gangs. Fortunately, his musical role models were entrepreneurs as well, offering a way out of a dead-end path.

Dr. Dre, from nearby Compton, built Death Row Records into one of the most influential labels in hip-hop history before eventually shifting focus to his namesake headphone line. Watching Dre from up close and moguls like Jay-Z and Diddy from afar gave Nipsey “the blueprint of what could be done with the platform of being a successful rap artist,” he says.

Nipsey started putting out mixtapes in 2005; on one of his early songs, Hussle In The House, he made sure to include a few financial lessons of his own. “Straight off the block, I sold dope to buy groceries,” he rapped. “Now it’s rap money, no advance, it’s all royalties.” Nipsey also prophetically flicked at his future Opportunity Zone gambit: “Pay taxes to these corners and put in work, it’s a policy.”

For his first music video, he wanted to do something that both represented his hometown and offered a path to earnings beyond music. Leafing through an old yearbook, he noticed a picture of local legend Darryl Strawberry in a vintage Crenshaw High School baseball jersey. Nipsey ordered a batch of throwback blue-and-yellow shirts with “Crenshaw” scripted across the front to wear in the shoot.

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