Investment Overview

Marcus & Millichap is pleased to present this 11 unit multifamily property located at 328 East Providencia Avenue in Burbank, CA. This property is not subject to LA City Rent Control. It is only subject to California's AB-1482 which allows maximum annual rent increases of 10%. All 11 units are currently eligible to receive this 10% max rent increase today. Once those rent increases are given, the income will increase by $2,680 per month or $32,162 per year. With this new income in place, the buyer would get the property to a 4.25% CAP rate and a 15.97 GRM without doing any work to the property. The only deferred maintenance that is known on the property is that the roof needs to be fully replaced. Built in 1988, this 12,150 square foot property sits on a 0.20 acre lot, and it boasts an excellent unit mix of (2) 1 bed / 1 bath units, (4) 2 bed / 2 bath units, (4) 3 bed / 2.5 bath units, and (1) 3 bed / 2.5 bath units. These units are very large with the average size being 1,100 square feet. The renovated units are equipped with new wood laminate floors in living room and bedrooms, tile floors in bathrooms, kitchen, dining room and hallways, built in shelving in the master bedrooms, central heating and air for all units, washer/dryer hookups, balconies for all units, and a full suite of new appliances. The building is fully secured with gated entrances to the building and subterranean parking lot. The property is fully parked with enough spaces for all the tenants that live there, and there is a laundry room located in the garage for the communal use of the tenants. The sellers have an attractive loan with Chase Bank that is assumable, and the loan has a better interest rate than you could get in today's loan market. The buyer would be assuming a loan of about $2.8M which is 50% LTV at list price, and the interest rate is 4.10%. The 4.10% interest rate is fixed until January 2027 which is about 4.5 years from now. The property is ideally located within walking distance of Downtown Burbank. Downtown Burbank is a mixed-use urban neighborhood spanning 33-blocks and featuring more than 400 shops, restaurants and businesses. Situated in the heart of entertainment industry, the area is renowned for its dynamic street scene, outdoor dining, and pedestrian orientation. Shopping and dining destinations include Urban Outfitters, IKEA, Barney's Beanery, and Burbank Town Center. AMC movie screens consistently rank in the top five of cinema circuits nationwide.