Clean asset, steady rents, and room to grow in Westchester.
8893 Reading Ave — Stabilized 4-Unit With Upside
We recently brought this four-unit, 2,829 SF property to market in Westchester.
Located on a 7,000 SF street-to-alley lot with a unit mix of (1) 2+1 and (3) 1+1 units, the asset is in clean condition and already generating stable income, without the need for major renovations or repositioning.
The property is offered at $1,275,000, which breaks down to roughly:
- $318,750 per unit
- ~$450 per square foot
No Renovations Required
The property is in great condition relative to many comparable assets in this range.
The interiors have already been updated with:
- Quartz countertops
- Shaker cabinetry
- New flooring
- Recessed lighting
- Stainless steel appliances
In addition to the interior upgrades, electrical and plumbing systems have been updated, and the building is equipped with tankless water heaters.
Current Income and Returns
The property is currently operating at:
- 5.37% cap rate
- 12.66 GRM
There’s upside to a 6.29% cap rate, but with the property already generating a 5.37% cap, the potential income isn’t theoretical.
With 25% down and today’s financing, the deal is essentially hovering around break-even from day one.
Rent Growth Opportunity in a High-Demand Location
There’s also optionality built into the property with the potential to push returns further.
Two detached two-car garages sit at the rear of the lot, which opens the door for potential ADU conversion.
The property is zoned LAR3 and falls within a TOC Tier 3 designation, which allows for higher buildable density which is why this pocket of Westchester has seen an increase in new construction over the past few years.
Located in Westchester, a pull zone for LAX, Playa Vista, and Silicon Beach, the demand for clean, well-located units in this corridor has held.
If you’re looking for an investment opportunity that doesn’t require a full repositioning, this property is worth a closer look.
Reach out if you’d like to walk through the numbers or see how this fits into your current strategy.
Best regards,
David Messiah
Messiah Multifamily Group
Strategic advisory for Los Angeles multifamily owners
