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8421 Cedros AVE Panorama City, CA 91402
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Key Details
Sold Price $17,300,000
Property Type Multi-Family
Listing Status Sold
Purchase Type For Sale
Square Footage 51,492 sqft
Price per Sqft $335
MLS Listing ID 22175395
Sold Date 08/23/22
Bedrooms 87
HOA Y/N No
Year Built 1986
Lot Size 0.683 Acres
Property Description
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.
Location
State CA
County Los Angeles
Area Pc - Panorama City
Zoning LAR4
Interior
Fireplace No
Exterior
Garage Covered
Total Parking Spaces 75
Building
Story 4
New Construction No
Others
Senior Community No
Tax ID 2653019052
Special Listing Condition Standard
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Bought with Filip Niculete • Marcus & Millichap