39 Unit Portfolio on the Same Block with ADU Potential
86 Walk Score & Not Subject to LA City Rent Control
Marketing description
The Kelly Morgan Commercial Group is pleased to present a rare opportunity to acquire a 39 unit multifamily portfolio consisting of two properties located on the same block in Reseda, California (both properties to be purchased together). The portfolio offers strong in place cash flow with a current 6.27% cap rate and 10.15 GRM, along with significant upside through rental increases and the potential development of up to 9 ADUs. Unlike many Los Angeles apartment properties, the assets are not subject to LA City Rent Control, allowing for annual rent increases of 5% plus CPI. Ideally located near Sherman Way and Reseda Boulevard, the properties benefit from an 86 Walk Score, convenient access to public transportation, nearby retail, dining, parks, and major educational institutions including CSUN and Pierce College. Combining immediate income, value-add potential, and a highly desirable San Fernando Valley location, this portfolio presents an attractive opportunity for investors seeking both cash flow and long-term appreciation.
Disclaimer: Property sold as is, where is.
Investment highlights
*Financial Metrics* - 6.27% Cap Rate, 10.15 GRM, with upside after ADU construction costs to a 7.03% Cap Rate and 9.33 GRM.
*Not Subject to LA City Rent Control* - Allows 5% + CPI Annual Rental Increases. Select units are currently due for an increase and can be increased up to 8%.
*Value Add Potential* - Both properties provide potential to add a total of 9 ADUs some may even include patios. Select existing units have already been beautifully upgraded.
*Location Benefits* - Near Sherman Way and Reseda Boulevard retail corridors with grocery stores, restaurants, pharmacies, West Valley Park, California State University, Northridge (CSUN) and Pierce College.
*Convenient Transit Access* – Located one block from the Reseda Blvd. and Sherman Way transit corridor, providing immediate access to Metro bus service and approximately 1.5 miles from the Metro G Line (Orange Line) Bus Rapid Transit corridor.
*High Walk Score* - Very walkable neighborhood with an 86 Walk Score and most errands can be accomplished on foot.
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