Investment Highlights
- A Core-Plus Opportunity: Investors will have the opportunity to enhance the unit interiors via a strategic renovation. Opportunity to capture $200+ per unit (approx. 5%) in rental upside.
- An Irreplaceable Asset: Opportunity to acquire a high-quality asset, built in 2014, at a significant discount to replacement cost (approximately 25%).
- Strong Submarket Fundamentals: Average market rents in the submarket are projected to grow 3.46% over the next 12 months.
- Dynamic Demographic Profile: The average household income in Encino is $127,158 and 45% of the population earns more than $100,000 per year. Roughly 52% of the Encino population are renters partly due to the growing cost of homeownership across the market.
- Accessibility to Jobs: The property is a half-mile from the 101 freeway which puts major employment centers such as West LA, Beverly Hills, West Hollywood, Hollywood, NoHo Arts, Warner Center, and Burbank all within a 20-30 minute commute. Neighboring Sherman Oaks (2 miles to the east) and Warner Center (5 miles to the west) are two of the largest employment centers in Los Angeles with 50,385 and 70,986 total jobs respectively.
- Potential Condo Conversion Strategy: Park Encino offers investors a potential condo conversion exit strategy as it was originally designed to be condos and has an expired tentative tract map. Based on recent sales of like-kind condominiums in the submarket, units at Park Encino could achieve between $600/SF and $800/SF if sold as condominiums.
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