519 South St
Multifamily | 4.68% CAP | 23 Units
Marketing description
519 South St is a 23-unit multifamily investment offered at $8,300,000 ($360,870/unit | $466.19/SF) in the South Glendale submarket — one of the San Fernando Valley's most supply-constrained and high-barrier rental markets. Built in 1986 on an 18,121 SF lot, the property features a balanced mix of 14 two-bedroom/two-bath and 9 one-bedroom/one-bath residences, each averaging 774 SF across 17,804 SF of building area. With 21 of 23 units currently occupied and generating $52,480 in monthly gross rent, the asset delivers immediate cash flow from close of escrow at a 4.68% in-place cap rate and a 1.20x debt service coverage ratio. Current rents average $2,282 per unit against market rents near $2,917 — a 28% discount that represents approximately $175,000 in annual rental upside achievable entirely through natural tenant turnover, with no capital improvement program required. The property sits outside California AB 1482 rent control protections, giving new ownership full flexibility to reset rents at each vacancy. Unit 205 — currently operating as a manager unit at $500/month — represents $2,750 in immediate monthly upside alone. Two additional units are immediately available for lease-up at market rents. At full market rents, NOI grows from $388,832 to $548,482, delivering a 6.61% pro forma cap rate and a GRM of 10.31. The property's separately metered electric and gas shift utility costs to residents, keeping pro forma expenses at just 28.30% of EGI — well below typical multifamily benchmarks.
Investment highlights
- 28% Rental Upside with No Rent Control — Pure Organic Lease-Up: Current rents across 21 occupied units average $2,282 against market rents of $2,917 — a 28% gap representing ~$175,000 in annualized upside. Built in 1986, the property is exempt from AB 1482, giving new ownership full freedom to reset rents at each turnover with no buyout exposure and no legal friction.
- Unit 205 — Immediate $2,750/Month Upside on Day One: The manager unit is currently occupied at $500/month on a 2+2 floor plan with a $3,250 market rent. This single unit alone represents $2,750 in immediate monthly upside — a built-in win available from close of escrow.
- Strong Pro Forma Returns with No Capital Required: At market rents, NOI grows from $388,832 to $548,482 — a 41% increase driven entirely by lease-up. The pro forma delivers a 6.61% cap rate, 10.31 GRM, and 5.91% cash-on-cash at 50% LTV with no renovation or capital improvement program required to achieve it.
- Two Units Available for Immediate Lease-Up: Units 107 and 210 are vacant and available at close, providing the incoming owner immediate revenue upside on top of an already cash-flowing asset. The remaining 21 units generate $52,480 in monthly gross rent at a 4.68% in-place cap rate with a 1.20x DSCR providing a stable income foundation.
- Lean Expense Profile with Separately Metered Utilities: Electric and gas are separately metered, shifting costs directly to residents. Pro forma expenses represent just 28.30% of EGI — well below typical multifamily benchmarks — with reserves and management fees already baked in.
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