Listed by Filip Niculete, Marcus & Millichap,

8421 Cedros Avenue

Panorama City, CA, 91402

$18,750,000

$364 per ft²
$18,750,000
$364 per ft²
Pending
Pending
 - For Sale
carpenters-square
51,492 ft²
property_type
Multi-family
calendar
Built 1986
We are pleased to present the Cedros Terrace Apartments, a 75 unit apartment community located in the dense rental market of Panorama City. This property is being offered for sale for the first time in 28 years, and it has only been owned by two people: the seller and the original developer. Built in 1986, this property is not subject to Los Angeles' strict Rent Stabilization Ordinance (RSO), but it is subject to California's AB-1482 which limits annual rent increases to 5% + CPI. With inflation being where it is, the buyer will soon be able to raise the rents on this building by 10%, which is the maximum rent increase (ceiling) allowed by AB-1482.The seller's passive management nature has allowed these tenants to go years without a rent increase, since before COVID, which means every one of the 75 units are eligible for a rent increase today. The seller is willing to give rent increases to the tenants during escrow if the winning buyer requests that to be done to help the buyer's going in CAP rate and increase the buyer's maximum loan dollars. With a modest $100 rent increase to these tenants, we can get the CAP rate to about 4.30% at close of escrow. If the buyer wants to wait until after close to handle the rent increases themselves, the buyer may be able to get more aggressive with the increases, likely causing turnover, which would allow quicker access to the estimated 33% upside potential in rents.The property has a great unit mix of (63) 1 Bed / 1 Bath Units and (12) 2 Bed / 1 Bath Units, with the average size of the units being 650sf and 875sf, respectively. The tenants are provided with security through an automatic and gated entry system for both the building entrance and parking garage entrance. Furthermore, the property offers its tenants a pool to enjoy and elevators to access all 4 floors above ground and the subterranean parking lot below ground. Units come with wall AC units, private balconies, open floor plans, and large closets and storage spaces.
MLS® ID:
22175395
Listed:
7/4/22
Updated:
8/17/22

Exterior/Building Features

Lot Size
0.68 acres lot

Other Property Details

Area Name
PC - Panorama City
Garage
No
Parking
Covered
Parking Total
75.0
View
N
County
Los Angeles
Pool
No
Total Stories
4
Zoning
LAR4

Property History

Date
Event
Price
Value
7/8/22
Pending
-
-

 

Listed by Filip Niculete, Marcus & Millichap,

Based on information from California Regional Multiple Listing Service, Inc. as of 8/17/22. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing.  Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.

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Data last updated 4:07 AM UTC, 8/17/22

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