The LAAA Team of Marcus & Millichap is proud to present this 5-unit apartment building located at 14514 Benefit Street in Sherman Oaks, California. This ideally located property is South of both Ventura Blvd and Dickens St, making this one of the most desirable pockets in the San Fernando Valley.

Built in 1951, this 3,608 sqft building sits on a 6,804 sqft lot (0.16 acres), and it boasts a strong unit mix of (1) studio, (3) 1 Bed units, and (1) 2 Bed / 1 Bath + Den unit. This great value-add opportunity has more than 50% upside potential in rents, and this is an ideal property to build at least one detached ADU. The best place to build this ADU would be over the carport that is at the back of the property, which will allow you to add a brand new construction unit to the property without getting rid of any parking for the tenants. Also, since there is no tuck-under parking at this property, there is no requirement for the buyer to do any mandatory seismic retrofitting.

Additionally, we have received a very attractive loan quote for a qualified buyer/borrower. Usually, with a property that has low income, it is difficult to get a decent loan-to-value, however we have a new residential lender who has expanded into the 5-8 unit multifamily space who has more relaxed guidelines than any other bank in the market. This bank is willing to give the following loan on this property for a buyer with a good credit score:

- 35% Down Payment
- 4.75% Interest Rate fixed for 30 year
or
- 4.99% Interest Only fixed for 10 years

With this loan, the value-add buyer who wins this deal will be able to break even on their investment while they spend time working on getting rents up to market and building a detached ADU. After the rents are at market rates and the ADU is built, this property will be worth a significant amount more and cash flowing well. At that point, the buyer would either refinance with a normal multifamily lender at a lower interest rate, or he/she could choose to sell it for a good profit. Either way, this loan allows a savvy buyer to save a significant amount of cash on the down payment and instead use that saved cash to invest back into the building in order to realize the great potential of this property.