14110 Yukon, Hawthorne, CA 90250

Description

Price Reduction! Now offered at only $7,500,000, this 28-unit, non-rent-controlled South Bay multifamily property delivers strong day-one cash flow at a 6.5% current cap rate, with significant upside through a proposed 15-unit ADU expansion. Built in 1974 and renovated in 2024, the property contains approximately 18,310 SF on a substantial 19,196 SF lot and offers a diverse unit mix of 24 one-bedroom units and four two-bedroom units, along with 33 on-site parking spaces. The defining investment opportunity is the potential to add 15 ADUs—7 attached and 8 detached—increasing the unit count by more than 50%, from 28 units to 43 units, without acquiring additional land. Upon completion of the proposed ADU program and after accounting for estimated construction costs, the property is projected to achieve an approximately 9% cap rate and 7.8 GRM, with an all-in basis of approximately only $199,000 per unit based on the expanded 43-unit count. This creates an opportunity to acquire a stabilized multifamily asset with strong existing income while adding substantial density at a basis that would be difficult to replicate through either a conventional acquisition or ground-up development. The property is not subject to local rent control and is generally governed by California’s statewide AB 1482 rent cap, currently allowing annual rent increases of up to 8.7% in the Los Angeles area, providing a clear path for below-market rents to move toward market over time. The property is strategically located within Hawthorne’s major employment and entertainment corridor, near several of Southern California’s most prominent aerospace, technology, sports, and entertainment destinations, including SpaceX, Tesla, Intuit Dome, SoFi Stadium, YouTube Theater, and Kia Forum. 14110 Yukon offers investors the combination of strong in-place cash flow, an approximately 6.5% going-in cap rate, and a clearly defined path to 43 units and an approximately 9% stabilized cap rate.