Investment Overview

NOAH Conversion Opportunity with Immediate Eligibility Siejay Apartments is an ideal candidate for a Naturally Occurring Affordable Housing (NOAH) conversion. With 43% of tenants already on vouchers and the remaining rents below 80% AMI, the asset qualifies for income certification under California’s Welfare Tax Exemption (RTC §214). New ownership can pursue full property tax relief while preserving affordability and tenant stability. Welfare Tax Exemption Enhances Cash Flow By partnering with a qualified nonprofit or forming a limited partnership with a nonprofit managing member, buyers can pursue the California Welfare Tax Exemption, eliminating property taxes on qualifying units. This strategy significantly enhances net operating income and long-term yield while supporting public affordability goals. Rare Alignment with LA Housing Policy & Future Legislation Siejay directly supports Los Angeles’ anti-displacement initiatives and the City’s broader efforts to preserve naturally affordable housing in vulnerable neighborhoods. With strong tenant stability and below-market rents, the property aligns with key public priorities and is positioned as a model for impact-driven preservation investment in a high-demand urban submarket. Significant Rental Upside with Limited Disruption Current 2-bedroom rents average ~$1,311, while market comparables exceed $2,200 — presenting over 68% rental upside. The property's existing affordability profile allows for low-friction compliance with NOAH guidelines while still offering long-term income growth potential through certification, turnover, or light value-add. 40–50 ADU Expansion Potential (Buyer to Verify) Situated on a massive 80,888 SF lot, the property offers a rare development overlay with the potential to add 40–50 Accessory Dwelling Units (ADUs), subject to HCD and city approval. This provides an additional layer of value creation for long-term investors. Transit-Oriented Location in High-Demand Submarket Located in the heart of Pico-Union, Siejay boasts a Walk Score of 91 and seamless access to the Metro A & E Lines, major bus routes, and the 10 & 110 Freeways. Its central position supports strong tenant retention and long-term rent growth. Institutional Scale with Favorable Basis Available as a portfolio with three other buildings, Siejay offers true scale for operators seeking to grow within LA’s urban core. The offering price reflects a favorable cost per unit and square foot when compared to recent sales, with the added advantage of long-term affordability positioning.