8638 Cashio was value-add complex located in the heart of Pico-Robertson, consisting primarily of spacious 2-bedroom, 2-bath units, each averaging approx. 1,000 SF. Situated 1 mile from Beverly Hills and Carthay Square—two highly sought-after neighborhoods known for their appeal to high-income young professionals and families—this property held significant potential. With an estimated 45% rental upside, 8638 Cashio had the opportunity to reach a 7.96% CAP rate and a 9.38 GRM at projected market rents, making it an attractive investment with promising future returns.
About The Property
Stats
Price $2,550,000
Year Built 1963
Current CAP 5.20%
Proforma CAP 8.68%
Price p/ Sq. ft. $299
Price P/ Unit $318,750
Background
Riding the momentum from a successful sale in Pico-Robertson just two weeks prior (8560 Whitworth), we launched the listing of 8638 Cashio with substantial energy. This property presented a strong value-add opportunity, featuring mostly 2-bedroom, 2-bath units. Situated just a mile from Beverly Hills and Carthay Square, it sits near two sought-after neighborhoods popular with affluent young professionals and families. The long-time owners of the property had grown tired of the anti-landlord political environment in Los Angeles, and their financial advisor was urging them to diversify their holdings by selling in Los Angeles and deploying that equity elsewhere.
Challenge
Despite offering approx. 45% rental upside, prospective buyers viewed this potential as a challenging goal. The property housed several long-term tenants—2 of whom had lived there for nearly 25 years, while 3 others had been there for nearly a decade. These long-term tenancies, coupled with the below-market rents, suggested the need for substantial capital expenditure to bring the units to market rent levels, as years of wear and tear were likely to require considerable improvements.
Result
Given the substantial interest we garnered from the previous listing, we were certain the ideal buyer for 8638 Cashio was within reach. Over a few short weeks, our comprehensive marketing strategy resulted in more than 10 offers. However, with the property’s considerable deferred maintenance, we took a strategic, measured approach rather than rushing into a quick escrow. To ensure transparency, we opened the entire building to inspections and provided thorough reports. This allowed buyers to approach the ‘best-and-final’ round of offers fully informed. Ultimately, the hands-off sellers were elated to accept an offer with minimal contingencies, leading to a swift 14-day close. Furthermore, the successful sale of 8638 Cashio marks our 2nd closed transaction in Pico-Robertson within the past 30 days, solidifying our momentum in an extremely challenging market.
