5505 Zelzah Avenue, Encino, CA 91316

27 + 1NC Units
Price Reduction - Asking Price $11,500,000

Non-Rent Control

Property Highlights

  • "A"+ Location in Encino South of the 101 Freeway near Ventura Blvd

  • Non Rent Control

  • 4% Cap Rate

  • 19.3% or better Average Annual Return On Investment

  • 96% or better Total 5 Year Return

  • Almost 100% of the units are rented effectively as 2 Bedroom units

  • Opportunity to add an additional Single Unit (*Buyer to please check with the city)

  • Central Air Conditioning

  • Luxury Amenities Can Be Added to Generate Higher Rents

  • Rents have increased 2.9% in just the 4th Quarter alone of 2018 within a 1/2 mile radius of the subject property compared to Los Angeles which increased 0.9%, that's more than triple the average increase of Los Angeles

  • Walking Distance to Shops, Restaurants & Entertainment on Ventura Blvd

More Information

27+1NC Non Rent Control Upgraded Units in Encino with a 4.1% Cap Rate. It is leased almost 100% as 2 Bedroom Units with Washer/
Dryer hookups in every unit. The property is being offered at a 4.1% Cap Rate and if you acquire the asset with a 5 year fixed
available at 3.85% (i/o) Interest Only for the first 3 years the cash flow would start at 4.26%. Recently a 2 Bedroom unit was leased
above our market rents which proves that you could potentially achieve a 5% Cap Rate just by increasing rents. Thus after you
raise rents and switch to an Amortized loan you would still have 4.02% Cash on Cash. (see pgs. 30-34)


Please take a look at two investment scenarios:


1) The scenario above which includes a Loan pre-pay penalty of $190K


2) An Assumable Loan Scenario which allows the Buyer to assume the current loan

@ 4.325% Fixed (see pgs. 26-29)

 

Both offer an amazing return for a property that is in an "A"+ location with the interiors already upgraded.

*The figures stated above are merely projections to be verified by Buyer.  Seller and his/her representatives does not warrant the accuracy of these figures. Buyer to conduct his/her own due diligence.

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