5541 Fulcher Ave

01-27-2022
07-27-2022

5541 Fulcher Ave, Los Angeles, CA 91601

  • Built in 1990 by the Seller
  • First Time Ever on Market
  • Not Subject to LA Rent Control
  • Very Well Maintained Building
  • Very Good NoHo Arts District
  • Estimated 22% Upside in Rents
  • Walking Distance to Metro
  • Very Walkable | 87 Walk Score

Property Description

The LAAA Team of Marcus & Millichap is pleased to present this 15 unit multifamily property at 5541 Fulcher Ave, located in the very desirable NoHo Arts District neighborhood. Built in 1990, this very well maintained property is free of LA's strict rent control laws, and is only subject to California's AB-1482, which limits annual rent increases to 5% + CPI. This property offers an investor the opportunity to capitalize on over 20% upside potential in rents without the worry of dealing with any significant deferred maintenance issues. Notably, the property does not need the expensive soft story retrofit, saving the buyer a significant amount of money.

This 4 story, 16,086 square foot property sits on a 0.23 acre lot, and it boasts an excellent unit mix of (9) 1 Bed / 1 Bath units and (7) 2 Bed / 2 Bath units. All of these units are bright and spacious, and some of the units have large private balconies where the tenants can enjoy great views of the NoHo Arts District. The property offer its tenants security with a gated entrance and a 24 hour security system, and there is ample onsite parking behind the building for all the tenants and some guests. Furthermore, the tenants have convenient access to two laundry facilities located on two different floors of this 4 story building, and there is an elevator in the building allowing ease of access to all 4 floors.

The property was built as a 14 unit building in 1990 with a common area recreation room for the tenants. Many years back, the sellers converted this recreation room into a non-conforming 1-bedroom apartment, and that unit is currently leased out and collecting rental income. With the new ADU laws, the buyer of this property should be able to quickly and cheaply convert this non-conforming unit into an ADU, which would add value to the property by making it a legal 15 unit apartment building.

The NoHo Arts District is a one-square-mile community in North Hollywood that is home to more than 20 live, professional theatres, dance studios, art galleries, public art, music recording venues, acting and art workshops, international dining options, clothing and specialty shops, and businesses that create a myriad of art forms. NoHo is "Where the Arts Are Made."

This is the first time this property has ever been on market. The sellers built this property themselves in 1990, and they have never listed the property for sale in the 30+ years of ownership, making this a very rare opportunity to own a generational asset in an extremely strong rental market.

Key Property Information

Listing Status
Available
Price
$ 5,850,000
No. of Units
15
Cap Rate
3.95%
GRM / GIM
15.87
Year Built
1990
Building Size
16,086 Sq ft
Lot Size
10007 sq ft
Opportunity Zone
No
Price per unit
$ 390,000

Financial Details

Gross Income
$ 366,768
Effective Gross Income
$ 357,565
Net Operating Income
$ 231,104
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34.171196, -118.373268

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