12 Units-Covered Land Play-Develop 8 NRC ADUs 9325 Sylmar Ave

9325 Sylmar Ave in Panorama City presents an excellent covered land play opportunity, combining immediate income with significant development opportunity. The property currently generates stable cash flow from 4 (1+1) and 8 (2+1) units and offers the ability to add 8 detached Non-Rent Control 2+2 ADUs in the parking lot.
This addition should immediately increase returns from a 4.21% Cap and 12.33 GRM to an 8.18% Cap and 8.08 GRM with no additional units turning over. After the construction the building would still have an addition 34% rental upside in rents.
*Please contact us for the OM at (310) 836-3638.
The buyer has the option to select from two strategies: The first is "Build and Hold" which offers exceptional cash flow once the 8 ADUs are added. We estimate that the buyer can cash-out refi the property after constructing the ADUs leaving an investment of only $500,000 in the asset and achieve a 16% cash-on-cash return in the first year at today’s rates.
The second strategy is to "Build and Flip." We estimate the total purchase, construction, carrying, and resale closing costs to be $4,730,000; with the resale value of $5,730,000, generating a $1,000,000 profit on your total investment of $1,600,000 that equal a 62.5% return on investment. This approach is suited for investors seeking quick, high returns in a shorter timeframe.
The investment is located just 3 blocks from the upcoming San Fernando Valley Light Rail Transit Project and less than 2 miles from the transformative 5-million-square-foot Panorama City Center, the property is positioned to benefit from substantial neighborhood revitalization. Nearby developments, such as the Panorama Tower luxury apartments and other mixed-use projects, are driving demand and rent growth in the area.
With its income-generating capacity, potential for additional units, and proximity to transformative developments, this property offers a unique opportunity to capitalize on immediate returns and future growth.
Contact Kelly Morgan Commercial Group for more information (310) 836-3638 or Kelly@KellyMorganCommercial.com
*Disclaimer:
The attached information and figures are projections provided solely for conceptual marketing purposes and must be verified by the prospective purchasers. Neither the Seller, KW Commercial, Kelly Morgan, their team, nor any related employees or independent contractors warrant their accuracy. Prospective purchasers should conduct their own due diligence and are advised to conduct a thorough investigation including consulting with the appropriate professionals regarding all relevant details, facts, and projections, including the ability to make any potential improvements or build an ADU on the property in question.