The Lucrum Real Estate Group is proud to present a rare investment opportunity: The Encino Terrace Apartments, is located in the highly coveted city of Encino. Situated at 5130 Yarmouth Ave., the property consists of 53 spacious units, including a non-conforming 12-poolside studio unit that could be converted into an Accessory Dwelling Unit (ADU), thereby bringing the total to 54 units. This asset boasts an incredible unit mix: 1 studio unit, 18 (1BR+1BA) units, 7 (2BR+1BA) units, 21 (2BR+2BA) units, 5 (3BR+2BA) units, and 1 (3BR+3BA) unit.
This unique, value-add investment offers a highly attractive $257.50 price per square foot and $231,132 cost per unit. The building is currently occupied by long-term tenants, accounting for the below-market rents and an estimated ±35% rental upside potential. It also offers the best in-place cap rate currently available for sale in Encino at 5.05%, with a pro forma cap rate of 8.34%! The current Gross Rent Multiplier (GRM) is 10.82, with a pro forma GRM of 7.91.
All units are subject to LARSO (Los Angeles Rent Stabilization Ordinance) and are eligible for annual rental increases of up to 4% in 2025, making the financial indicators even more attractive.
Built in 1956, The Encino Terrace Apartments features community-style apartment living situated around a pool and lounge area, 53 secured gated carports and tuck-under parking spaces, a full-sized laundry room, several units with private balconies or patios, wall-mounted AC units, and superb landscaping. The building was constructed with a wood-frame structure, a flat roof, and a painted stucco exterior, totaling ±47,573 square feet on a ±56,367 square foot lot zoned R3.
With tremendous value-add potential, this property presents an exceptional opportunity to elevate its appeal and pride of ownership by overhauling the electrical systems, upgrading plumbing, replacing the roof and windows, and improving the overall aesthetics of the property. The soft-story retrofit work has already been completed. The units are individually metered for gas and electricity, while the owner covers water, trash, and landscaping expenses.
Encino, translated as “oak” in Spanish, derives its name from the area’s abundance of oak trees. The neighborhood is renowned for its tree-lined streets, spacious single-family homes, and a serene atmosphere that appeals to families, professionals, and retirees alike. Residents enjoy a suburban feel while benefiting from proximity to Los Angeles’ vibrant city life. Encino is a picturesque and affluent neighborhood nestled in the central part of Los Angeles’ San Fernando Valley. Known for its blend of suburban tranquility and urban convenience, Encino offers a unique living experience characterized by upscale homes, lush greenery, cultural diversity, and a rich historical backdrop. The community is also served by reputable public and private schools, making it an attractive option for families.
Encino fosters a strong sense of community, with residents often participating in local events and initiatives. The neighborhood’s cultural diversity is reflected in its array of restaurants, shops, and community programs. Encino’s blend of suburban comfort and urban amenities creates a welcoming environment for individuals and families seeking a balanced lifestyle.
The Encino Terrace Apartments boast a 79 walk score as they are conveniently in
proximity to the bustling Ventura Blvd that offers residents a diverse range of shops & restaurants. The 101 & 405 Freeways are conveniently a short drive away.
In summary, Encino stands out as a desirable Los Angeles neighborhood that offers a harmonious blend of history, community, and modern living. Its strategic location, coupled with a high quality of life, makes it a compelling choice for those looking to settle in the San Fernando Valley.
Once you schedule a call, you’ll have taken the first step to getting the representation you deserve.
