12
$383,333
$740.98
4.38%
15.37
6%
12.13
The LAAA Team of Marcus & Millichap is pleased to present these 12 units located at 2683 34th Street, in Santa Monica, California. Built in 1959, the asset sits on 8,874 square feet of land with 6,208 square feet of rentable area and consists of (6) Studio / 1-Bath Units and (6) 1-Bed / 1-Bath Units.
This value add opportunity allows an investor to capitalize on over 28% rental upside potential, while still getting in at a great day-1 CAP rate of 4.13%. Another excellent opportunity to add value would be to build ADUs on this lot. With the new, relaxed ADU laws passed last year, adding ADUs to this building would be quicker and easier than ever before. Both the garages in the front and in the back of the lot present the ideal location for the ADUs to be cheaply built on top of the garages.
The property boasts a very good amount of parking for the tenants, and this parking also brings in $14,400 of extra income each year. In total, there are 10 garage parking spaces for these 12 units, with additional surface parking in the middle of the lot. Also, because there is no tuck-under parking, there is no requirement for the Buyer to go through the expensive earthquake / soft-story retrofitting requirement that many other buildings need.
This seller has owned this property for more than 15 years, all the while keeping the building in very good shape. Most recently, the seller spent nearly $50,000 replacing all of the plumbing with brand new copper plumbing, which is another large expense that the buyer will be able to avoid.
With today's historically low interest rates, an investor can expect a sub-3.5% interest rate with an estimated 40% down payment ($1,840,000 down payment). With this loan quote, the Buyer's total return will be over 5% from day 1, with the potential of getting that return to nearly 10% through added value and increased rents.
The property is located in a central rental market of Santa Monica, directly adjacent to Sawtelle, West LA, and Mar Vista.
Furthermore, the property is walking distance to the following: Santa Monica College, Trader Joes, Whole Foods, 24 Hour Fitness, Pavilions, Bank of America, Wells Fargo Bank, Ocean Park Pharmacy, and countless other boutique restaurants, juice bars, and shops.
