3662 Fredonia Dr, Los Angeles

the successful closing of 3662 N Fredonia Drive, a rare Studio City hillside four unit property featuring a newly completed, fully permitted 2025 ADU. The transaction reflects continued buyer demand for turnkey, small-balance multifamily assets with clear regulatory profiles in supply constrained Los Angeles submarkets.

Property Overview

3662 N Fredonia Drive is a legal four-unit multifamily property located in the coveted hills of Studio City, directly adjacent to Universal Studios and within the Mulholland Scenic Parkway (Outer Corridor). Originally constructed in 1941 and 1962, the property consists of two spacious two-bedroom units, one studio, and a brand-new ADU completed in 2025 with a Certificate of Occupancy issued July 27, 2025.

The Deal Story

The Studio City small multifamily market has remained highly competitive, particularly for assets that combine strong in-place income with limited operational risk. From the outset, 3662 N Fredonia Drive stood out due to its newly completed ADU, hillside location, and clean regulatory positioning—features that continue to attract capital even as underwriting standards tighten across Los Angeles.

The buyer was a first-time Los Angeles multifamily investor from Orange County, actively seeking to establish a foothold in the LA market. Despite a higher interest rate environment and ongoing regulatory changes, the buyer viewed this acquisition as a long-term strategic entry into one of the city’s highest-barrier submarkets. Location quality, income durability, and regulatory clarity ultimately outweighed short-term financing headwinds.

The acquisition was financed with a $1,180,000 loan at a 7.625% fixed rate amortized over 30 years, with the buyer placing 20% down. While the cost of capital reflected today’s market realities, the buyer was willing to accept the higher-rate risk for the opportunity to own a stabilized four-unit property with a newly constructed, RSO-exempt ADU in Studio City—an asset type that remains exceptionally scarce.

The transaction presented a notable challenge when the appraisal returned below the contract price on three separate occasions. Through strong market knowledge, persistent negotiation, detailed income support tied to the ADU, and collaboration with the lender and appraisal team, we were ultimately able to support our value and keep the deal intact.

The property ultimately closed at $1,475,000, reflecting market-supported pricing for a turnkey...