1118-1120 Sanborn Ave

Investment Overview

Rare five-unit Silver Lake investment one parcel north of Sunset Blvd and steps from Sunset Junction: a freestanding two-bedroom house plus four one-bedroom units in two 1920s duplexes, on a 6,250 SF lot. All five units are occupied, in-place rents sit roughly 33% below market, and the single-family home offers an owner-occupier path.

Investment Highlights

• Prime Silver Lake location: one parcel north of Sunset Blvd, across from Sunset Junction and its coffee and dining scene, with upwards of 20 restaurants and bars within two blocks.
• Owner-occupancy opportunity: the freestanding single-family home may be occupied by a buyer through the landlord occupancy provision of the Los Angeles Rent Stabilization Ordinance.
• Value-add upside: in-place rents sit roughly 33.2% below market, a loss to lease of about $3,613 per month. Reaching market rents lifts NOI from $98,938 to $137,079 and the cap rate from 6.20% to 8.59%.
• Priced to the market: a 6.20% in-place cap rate against a sales comparable average of 5.27%, and $319,000 per unit against a comparable average of $364,545.
• Excellent unit mix: one stand-alone 2-bed/2-bath house of about 1,250 SF and four 1-bed/1-bath units in two duplexes, across three buildings.
• Fully occupied: all five units are leased, providing stable income while a new owner works toward market rents.
• Recent improvements: both duplex roofs are new or recent, the four duplex units have tankless water heaters installed in 2014, the house electrical service was upgraded, and the rear decks and patio were fully rebuilt. Two of the duplex units have been renovated with in-unit laundry.
• Expansion potential: the large rebuilt patio off the house may allow added living area or an ADU with its own entrance. Buyers should verify viability in their own due diligence.
• Low utility costs: tenants pay for trash.