Angled exterior of 10883 Rose showing clean architecture, green railings, and private balconies.

SUCCESS STORY

Sold at 4.25% CAP & 12.69 in 90 Days in Palms

10883 Rose Ave.

During the due diligence period, they discovered that the actual operating expenses were significantly higher than initially estimated.

Offering Price
$4,650,000

City

Palms

Current CAP

4.25

Price per unit

$465,000

Lot Size

8,015 SF

10883 rose

About the Property

10883 Rose was a well-maintained complex in the heart of Palms, that was not subject to City of LA rent control. The exemption from City of LA RSO allowed for an 8.8% annual rent increase. Built in 2000, the property featured (10) 2-bdrm. and 2-bath units that had been upgraded with wood laminate flooring, stainless steel appliances, quartz countertops and recessed lights. Property amenities approx. 20 subterranean parking spaces, a community laundry room, and controlled access.

Offering Price

$4,650,000

Number of Units

10 Units

Bldg. Size

11,016 SF SF

Price per Foot

$422

Year Built

2000

Market CAP

5.27

Zoning

LAR3

Background

Built in 2000, 10883 Rose was a 10-unit complex exempt from the City of LA's Rent Stabilization Ordinance (RSO). The exemptions provided a significant advantage, as approx. 75% of LA's multifamily properties are subject to RSO restrictions. The ability to increase rents annually by CA's maximum of 8.8% (5% + CPI), compared to LA's rent cap of 4%, made the property particularly attractive to investors seeking greater flexibility and enhanced income potential. The property's owner, a long-time client of Kenny's, wanted to diversify their LA real estate portfolio.

Angled exterior of 10883 Rose showing clean architecture, green railings, and private balconies.
Angled exterior of 10883 Rose showing clean architecture, green railings, and private balconies.
Angled exterior of 10883 Rose showing clean architecture, green railings, and private balconies.

Result

In mid-October, we went under contract with an outside agent representing an all-cash exchange buyer. During the due diligence period, they discovered that the actual operating expenses were significantly higher than initially estimated. Despite this discrepancy, the buyer remained deeply interested in the property, ultimately closing escrow in 30 days at 97% of the listed price - $4,650,000. The seller plans to exchange into an out-of-state DST, significantly boosting his income stream. Meanwhile, the buyer recognized the value-add potential in this newer construction property, and intends to optimize expenses through more efficient prop mgmt. practices.

Street-facing perspective of 10883 Rose, highlighting curb appeal and updated exterior finishes.
Street-facing perspective of 10883 Rose, highlighting curb appeal and updated exterior finishes.
Street-facing perspective of 10883 Rose, highlighting curb appeal and updated exterior finishes.

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Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.

© Copyright 2024.

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.

© Copyright 2024.

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.

© Copyright 2024.

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01991628. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.

© Copyright 2024.