Marcus & Millichap, as the exclusive listing agent, is pleased to present to qualified investors this 8-unit, value-add multifamily investment opportunity located at 5529 Bonner Avenue in North Hollywood, California. Located south of Burbank Boulevard, between Lankershim Boulevard and Vineland Avenue, this property benefits from its superior location within the NoHo Arts District - the premier live/work/play destination in the San Fernando Valley.
The subject property was built in 1963, and consists of one (1) studio unit, six (6) one-bedroom/one-bathroom units, and one (1) two-bedroom/one-bathroom unit with a gross rentable area of approximately 4,576-square feet. The building features two (2) tuck-under parking stalls at the rear of the building, and six (6) additional parking stalls for a total of eight (8) parking spaces. There is on-site, coin operated laundry which generates additional income for the owners, as well as storage space (above each parking stall) which could be rented for additional income as well. Units are separately metered for gas and electric. The property is situated on a 7,248-square foot lot zoned LAR4 and has been assigned a Tier 3 TOC (Transit Oriented Community) designation.
Benefiting from an irreplaceable North Hollywood location, the subject property is just a short 5-minute walk (less than half a mile) to the North Hollywood Metro Station, providing residents with easy access to local collages, retail destinations, and major employers. As a cultural hub for artists and entertainers, North Hollywood is a major destination for visitors and residents alike as evidenced by the 30+ large-scale development projects currently under construction and/or in planning. There are 7 current major developments within a 1-mile radius of the property; a 70 unit Best Western Hotel, an Ikon Hotel, 329 units at The Weddington on Weddington and Chandler, 144 units at Vineland and Otsego, and 297 Units at Lankershim and Otsego that will house a 26,000 square foot Whole Foods due to open in 2019.
With substantial upside in current rents and a superior NoHo Arts District location, this property provides an excellent opportunity for an investor/operator increase rental income at the property through a more aggressive management style and renovation program. Moreover, the property falls within one of Los Angeles County's designated Qualified Opportunity Zone tracts. As such, this investment presents a unique opportunity for a new investor to benefit from a long term tax advantage. This program was spearheaded by the federal government in 2017 to revitalize area of economic opportunity around the country and its inventive program has two parts: (1) the deferral, until the end of 2026, of taxation equal to the capital gain realized on the sale of the assets, provided the gain is reinvested within six months in a Qualified Opportunity Fund, and (2) the exemption of federal income tax upon the gain (if any) from the disposition of the OZP investment, provided it is held for more than 10 years.
