3005 S Normandie Ave 8 Unit Apartment Building $1,295,000 ($161,875/Unit) 7.33% Cap Rate Los Angeles, CA 90007

Property Overview
3005 S Normandie Ave is an eight-unit multifamily investment located in the historic Adams–Normandie neighborhood of Los Angeles, just minutes from USC, Exposition Park, and Downtown LA. The property offers investors a compelling value-add opportunity with strong in-place income, significant rent upside, and multiple levers for NOI growth through unit renovations, parking income, and ancillary revenue streams.
Built in 1960, the 4,837-square-foot building is situated on a 6,600-square-foot LAR3-zoned lot and features a balanced mix of (6) one-bedroom/one-bath units and (2) two-bedroom/one-bath units. Current rents average $1,557 per month compared to market rents of approximately $1,958 per month, representing ~26%+ upside potential. With nine on-site parking spaces serving eight units, investors can further enhance cash flow through parking fees and utility bill-backs.
Financial performance is strong and scalable, with a 7.33% in-place cap rate projected to rise to 10.03% pro forma and cash-on-cash returns improving from 8.93% to 28.69%. At the new basis, the deal offers stronger day-one yield with meaningful upside as rents are brought to market. As Los Angeles continues to invest in infrastructure ahead of the 2028 Olympic Games, the Adams–Normandie corridor is poised for continued appreciation, ensuring both durable income and long-term value growth.
Investment Highlights:
• Attractive Value-Add Play: Offered at $1,295,000 (~$162K per unit / $268 per SF) with meaningful rent growth potential and favorable financing positioning.
• Immediate Cash Flow: Delivers a 7.33% current cap rate with upside to 10.03% on pro forma as units turn and rents reach market levels.
• One Vacant Unit: Allows for immediate repositioning and rental adjustment to market rate without tenant relocation.
• Substantial Rent Upside: Several units are significantly below market rents, presenting a clear path to higher returns.
• Ancillary Income Potential: Nine parking spaces and options for RUBS or storage income provide additional NOI growth.
• Strong Tenant Demand: Prime location near USC, DTLA, and Exposition Park attracts stable renters and minimizes vacancy risk.
• Olympics-Driven Growth: Centrally positioned to benefit from citywide investments and rising demand ahead of the 2028 Los Angeles Olympics.
• Efficient Operations: Manageable size and layout support operational efficiency and long-term scalability for investors.