Built in 1981, 8135 Reseda was a 10-unit complex that is not subject to City of LA RSO (AB-1482 – Costa Hawkins Act). 8135 Reseda was offered at $250,000 per unit, $271 per foot, and 12.82 GRM on current rents. This value-add opportunity presented approx. 35% rental upside, and a future investor has the opportunity to reach a 7.50% CAP and 9.50 GRM, by achieving projected market rents for renovated units in the area.
About The Property
Stats
Price $2,325,000
Current CAP 5.95%
Proforma CAP 8.10%
Price P/ Unit $232,500
Background
After decades of ownership, the Sellers of this 2-property San Fernando Valley portfolio were ready to move on. Managing both buildings had become increasingly burdensome due to mounting deferred maintenance, and it was time to simplify. Referred to the Kenny Stevens Team by their trusted residential agents in the South Bay, the family hired our team to lead the sale of both properties. We launched marketing with a clear strategy, highlighting the financial strength of the deals and affordability relative to other LA submarkets. Our first campaigns generated over 5,500 email opens and more than 250 marketing package views per property, sparking quick buyer interest.
Challenge & Result
After generating five offers, we entered escrow with a full-ask buyer. But deferred maintenance reared its head again, and the buyer requested a $500,000 price reduction. With time ticking on the Seller’s exchange, she considered accepting. Instead, we advised relaunching. After private tours and best-and-final offers from multiple groups, we secured a buyer at a price $200,000 higher than the original counter. Most importantly, we closed in time to complete our client’s DST exchange. From start to finish, the entire portfolio sale took four months, highlighting how having the right experience on your side can make all the difference.
