9635 Woodman Ave #1, Arleta

54 Beds      45 Baths      $7,800,000    SOLD

1031 Case Study


The subject Property consists of 18-single family three-bedroom, two-and-one-half bathroom homes in a gated community built under the City of Los Angeles’s small lot ordinance (i.e. zero lot line). Originally constructed in 2008 with the C.O.O. issued in July 2012, each well appointed home has a separate APN and is individually metered for electric, water and gas. This gated small lot subdivision includes common area security cameras with remote monitoring.
 
HISTORY

  • A private investor purchased the unfinished subdivision from the lender
  • The investor spends approx. $500,000 to finish construction, obtain certificates of occupancy and upon completion operates this asset as an 18-unit apartment complex
  • In the fall of 2016 the investor decides to capitalize on strong demand for rental properties in the SFV
  • Marty Clouser of Kennedy Wilson Real Estate Sales & Marketing represented the seller of this exceptional portfolio of 18-single family homes
  • At the time of the sale the Property featured a stabilized income stream with below market rents and low turnover presenting a strong opportunity for income growth
  • The offering is underwritten at $320,484 net operating income
  • The sale closed at a sales price of $7.8 million (4.10 Cap)
  • This was the upleg of a 1031 exchange and the investor used the proceeds to acquire a newly renovated single-tenant NNN leased Class A office building in Sorrento Valley, CA
 

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