1215 Neola Street
Prime NELA | Eagle Rock
Marketing description
One West Group | eXp Commercial is pleased to present the exclusive listing of 1215 Neola Street, a four-unit Eagle Rock income property offered at $2,650,000. The asset is situated on a 7,000 SF R1-1 zoned parcel with 3,618 SF of total building area, configured as four income-producing units with a balanced mix of two larger 3BR/2BA floor plans and two smaller 1BR/1BA units. Original construction dates to 1912 with a 1923 addition, and units have been remodeled post-2020.
The property generates an annualized rent roll of $159,272 with current operating expenses of $39,588, producing in-place NOI of $107,267 and an in-place cap rate of 4.05% on the asking price. Pro forma NOI on stabilized operations is projected at $112,506, equating to a 4.25% pro forma cap rate. The property is currently self-managed by ownership with strong rent collection and stable tenancy.
Per City of Los Angeles records, the asset is structured as a three-unit property comprising a front six-bedroom / two-bath single-family residence and two rear conforming one-bedroom / one-bath units. The front residence is currently operated as two separate income streams: a 3BR/2BA main floor and a 3BR/2BA upper unit with its own kitchen, separate entrance, and independent utilities. The upper unit's self-contained configuration positions it as a strong candidate for formal legalization as a Junior ADU or ADU under California state statutes, subject to City of Los Angeles approval.
In addition to the four operating units, the property includes a basement and additional unaccounted square footage that may offer expansion potential, subject to City of Los Angeles verification, zoning review, and permitting. The 7,000 SF R1-1 parcel sits well below maximum lot coverage, leaving meaningful unbuilt land that supports long-term flexibility for additional ADU or JADU density.
Eagle Rock is one of Northeast LA's most stable rental submarkets, anchored by the Colorado Boulevard retail corridor, Occidental College, and direct access to the 134 and 2 freeways connecting tenants to Glendale, Pasadena, Burbank, and Downtown LA. The submarket continues to benefit from gentrification pressure spilling east from Glendale and Pasadena, supporting durable rent growth and long-term asset appreciation.
The opportunity is best suited for a private investor or 1031 buyer seeking a stabilized Northeast LA asset with embedded optionality through ADU legalization, additional density potential, and continued submarket appreciation.
Investment highlights
- Stabilized In-Place Income. Annualized scheduled rental income of $159,272 supports a 4.05% in-place cap rate and a 4.25% pro forma cap rate at the asking price of $2,650,000.
- Recently Remodeled Units. Units have been remodeled post-2020, supporting the property's strong in-place rents, reducing near-term capital expenditure exposure, and providing turnkey product to incoming ownership.
- Strong Operating Margins. T-12 operating expense ratio of 27.0%, supported by tenant-paid electric and gas utilities, owner-only water and trash, and current self-managed operations.
- Eagle Rock Income Property. 3,618 SF on a 7,000 SF R1-1 parcel, configured as three legal units per City records and operated as four income streams across a balanced unit mix.
- Premium Floor Plans. Two 3BR/2BA configurations within the front structure, plus two 1BR/1BA rear conforming units. The 3BR units command premium rents in Eagle Rock given limited supply of larger family-oriented rental product.
- Dual-Income Front Structure. The front residence operates as two distinct income streams: a 3BR/2BA main floor at $5,870 / month and a 3BR/2BA upper unit at $3,240 / month with its own kitchen, separate entrance, and independent utilities.
- Clear ADU / JADU Legalization Pathway. The upper unit's self-contained configuration positions it for formal legalization under California state statutes (AB 68 / AB 881 / Government Code Section 65852.2), subject to City of Los Angeles approval. Legalization converts the existing income stream into a fully recognized fourth legal unit, enhancing NOI durability, appraisal value, and lender treatment.
- Mark-to-Market Upside on Back East 1BR. Back East 1BR/1BA currently leased at $1,312 / month, well below Eagle Rock 1BR market rents of $2,000 to $2,400. Turnover supports a meaningful rent reset.
- Basement and Expansion Potential. The property includes a basement and additional unaccounted square footage that may offer expansion potential, subject to City of Los Angeles verification, zoning review, and permitting.
- Underutilized R1-1 Parcel. Building footprint sits well below maximum lot coverage on the 7,000 SF parcel, preserving unbuilt land that supports additional ADU or JADU density under California state law.
- Strong Submarket Fundamentals. Eagle Rock benefits from gentrification pressure spilling east from Glendale and Pasadena, supporting durable rent growth and long-term asset appreciation.
- Prime Walkable Location. Within minutes of the Colorado Boulevard retail corridor, Occidental College, Trader Joe's, Eagle Rock Plaza, and direct 134 / 2 freeway access to Glendale, Pasadena, Burbank, and Downtown LA.
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