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Multifamily

4957 Kester Ave

4957 Kester Ave, Sherman Oaks, CA 91403

Listing Price: $6,020,000

Cap Rate
4.30%
Number of Units
14
Occupancy
93.0%
Price/Unit
$430,000
Price/Gross SF
$465.76
Gross SF
12,925

Investment Overview

Marcus & Millichap is pleased to announce the opportunity to purchase 4957 Kester Avenue, a 14-unit multifamily property located in the high-end Sherman Oaks neighborhood of the San Fernando Valley. Situated near the intersection of Valleyheart Drive and Kester Avenue, the building sits only four blocks from the fine dining and premium boutiques along world renowned Ventura Boulevard. Boasting a unit mix of nearly all two- and three-bedroom apartments, the property features spacious floorplans covering approximately 12,925 square feet. More than 78% of the unit interiors have been thoroughly upgraded, featuring new amenities such as custom Calacatta quartz countertops, French Oak-inspired wood flooring, stainless steel appliances, and completely remodeled bathrooms. A new investor may be able to benefit from the already-completed upgrades to realize consistent income improvement, as area rents have steadily increased even in the short time since these renovations were completed. Moreover, a new owner can conduct a similar revitalization of the remaining three apartments to potentially recapture approximately 20% in rent upside. Because nearly all of the units are currently leased at or near market rent levels, the effects of local rent control have been essentially removed, leaving the new owner a market rental base similar to that of a non-rent controlled asset. Recent macroeconomic fundamentals have provided strong tailwinds for apartment occupancy and rental rates, as more potential homeowners have remained in rental housing while single-family mortgage interest rates have nearly tripled. With home values lagging in responding to these higher rates -- the least expensive single-family home available for sale in the 91403 zip code is currently $1,325,000 according to the MLS -- the barrier to homeownership for most renters remains extremely high, which in turn boosts overall apartment demand to the benefit of landlords. Situated in a very desirable neighborhood within the San Fernando Valley, the location allows tenants convenient access to numerous area amenities. The Sherman Oaks Galleria and Regal Cinemas sit mere blocks from the property, while the Westfield Fashion Square is approximately one mile east of the building. Whole Foods, Gelsons, Pavilions, and Trader Joe’s are all in the immediate area, while several bars and restaurants along Ventura Boulevard provide excellent dining options. The building is also conveniently located equidistant from the booming Warner Center/Woodland Hills area and the creative campuses and studios within Burbank and Glendale, which allows the property to draw residents employed at each of those major hubs.

Investment Highlights

  • Outstanding Sherman Oaks Location -- Only Four Blocks from World Famous Ventura Boulevard
  • Attractive Assumable Financing at a 3.23% Interest Rate -- Seller May Carry Additional Financing
  • Vast Majority of Units Already Leased at or Near Market Rental Rates, Providing the New Owner a Rental Income Base Almost Unaffected by Local Rent Control
  • Extensively Upgraded Property -- Over 78% of Units Thoroughly Remodeled in Recent Years, Featuring French Oak-Inspired Wood Flooring and Custom Calacatta Quartz Countertops
  • Excellent Unit Mix -- 85% of the Apartments Contain Two or Three Bedrooms
  • New Roof and Gutters in 2019, Modern Wood Cladding Facade, Upgraded Windows and Decking, Newly Repaved Asphalt, Substantial Amount of Copper Plumbing
  • Strong Fundamentals for Consistent Apartment Demand -- High Single-Family Residential Mortgage Rates and Elevated In?ation have Kept Potential Homeowners in Rental Units
  • Extremely High Barrier to Home Ownership in Local Neighborhood -- Currently No Single-Family Homes Available in 91403 Zip Code for Less Than $1,325,000 (Source: MLS)

Exclusively Listed By

Multifamily

4957 Kester Ave

Listing Price: $6,020,000

Cap Rate
4.30%
Number of Units
14
Occupancy
93.0%
Price/Unit
$430,000
Price/Gross SF
$465.76
Gross SF
12,925

Investment Highlights

  • Outstanding Sherman Oaks Location -- Only Four Blocks from World Famous Ventura Boulevard
  • Attractive Assumable Financing at a 3.23% Interest Rate -- Seller May Carry Additional Financing
  • Vast Majority of Units Already Leased at or Near Market Rental Rates, Providing the New Owner a Rental Income Base Almost Unaffected by Local Rent Control
  • Extensively Upgraded Property -- Over 78% of Units Thoroughly Remodeled in Recent Years, Featuring French Oak-Inspired Wood Flooring and Custom Calacatta Quartz Countertops
  • Excellent Unit Mix -- 85% of the Apartments Contain Two or Three Bedrooms
  • New Roof and Gutters in 2019, Modern Wood Cladding Facade, Upgraded Windows and Decking, Newly Repaved Asphalt, Substantial Amount of Copper Plumbing
  • Strong Fundamentals for Consistent Apartment Demand -- High Single-Family Residential Mortgage Rates and Elevated In?ation have Kept Potential Homeowners in Rental Units
  • Extremely High Barrier to Home Ownership in Local Neighborhood -- Currently No Single-Family Homes Available in 91403 Zip Code for Less Than $1,325,000 (Source: MLS)

Investment Overview

Marcus & Millichap is pleased to announce the opportunity to purchase 4957 Kester Avenue, a 14-unit multifamily property located in the high-end Sherman Oaks neighborhood of the San Fernando Valley. Situated near the intersection of Valleyheart Drive and Kester Avenue, the building sits only four blocks from the fine dining and premium boutiques along world renowned Ventura Boulevard. Boasting a unit mix of nearly all two- and three-bedroom apartments, the property features spacious floorplans covering approximately 12,925 square feet. More than 78% of the unit interiors have been thoroughly upgraded, featuring new amenities such as custom Calacatta quartz countertops, French Oak-inspired wood flooring, stainless steel appliances, and completely remodeled bathrooms. A new investor may be able to benefit from the already-completed upgrades to realize consistent income improvement, as area rents have steadily increased even in the short time since these renovations were completed. Moreover, a new owner can conduct a similar revitalization of the remaining three apartments to potentially recapture approximately 20% in rent upside. Because nearly all of the units are currently leased at or near market rent levels, the effects of local rent control have been essentially removed, leaving the new owner a market rental base similar to that of a non-rent controlled asset. Recent macroeconomic fundamentals have provided strong tailwinds for apartment occupancy and rental rates, as more potential homeowners have remained in rental housing while single-family mortgage interest rates have nearly tripled. With home values lagging in responding to these higher rates -- the least expensive single-family home available for sale in the 91403 zip code is currently $1,325,000 according to the MLS -- the barrier to homeownership for most renters remains extremely high, which in turn boosts overall apartment demand to the benefit of landlords. Situated in a very desirable neighborhood within the San Fernando Valley, the location allows tenants convenient access to numerous area amenities. The Sherman Oaks Galleria and Regal Cinemas sit mere blocks from the property, while the Westfield Fashion Square is approximately one mile east of the building. Whole Foods, Gelsons, Pavilions, and Trader Joe’s are all in the immediate area, while several bars and restaurants along Ventura Boulevard provide excellent dining options. The building is also conveniently located equidistant from the booming Warner Center/Woodland Hills area and the creative campuses and studios within Burbank and Glendale, which allows the property to draw residents employed at each of those major hubs.

Exclusively Listed By

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