5505 Zelzah Avenue, Encino, CA 91316
27 + 1NC Units
Price Reduction - Asking Price $11,500,000
Non-Rent Control
Property Highlights
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"A"+ Location in Encino South of the 101 Freeway near Ventura Blvd
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Non Rent Control
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4% Cap Rate
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19.3% or better Average Annual Return On Investment
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96% or better Total 5 Year Return
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Almost 100% of the units are rented effectively as 2 Bedroom units
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Opportunity to add an additional Single Unit (*Buyer to please check with the city)
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Central Air Conditioning
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Luxury Amenities Can Be Added to Generate Higher Rents
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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
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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.
