Description

We are pleased to present 542 N. Normandie Ave, a rare 12-unit multifamily investment opportunity ideally located in the heart of the Mid-Wilshire and East Hollywood transit corridor. Built in 1988 with quality construction and spanning approximately 11,700 square feet, this three-story property offers spacious 2-bed, 2-bath units, each designed for comfortable urban living. All units are separately metered for gas and electricity. The property includes an on-site laundry facility for tenant convenience and additional income. The building provides secure entry, 16 gated parking spaces plus 2 guest spots, private balconies for select units, and a large storage area that can generate further revenue. With a current cap rate of 5% and a pro forma cap rate of 7%, the asset offers substantial upside through rent growth, operational efficiencies, and value-add improvements. One of the most immediate opportunities for investors lies in the implementation of a RUBS (Ratio Utility Billing System) program. By allocating utility expenses back to tenants, new ownership has the opportunity to significantly reduce operating costs, boost net operating income (NOI), and enhance cash flow. This streamlined approach not only increases the property’s performance but also drives long-term equity growth, positioning the asset for superior returns. Located near Melrose, Hollywood, and Koreatown, tenants benefit from proximity to major job hubs, dining, entertainment, and transit options—ensuring strong and stable demand in one of Los Angeles’ most dynamic rental markets. This property is not subject to Los Angeles City Rent Control. Only California AB 1482 statewide rent regulations apply, allowing for greater long-term rent growth and flexibility.