8261 Norton Ave, West Hollywood, CA 90046

Description

8261 Norton Avenue is an eight-unit apartment building in the heart of West Hollywood, offered at $3,100,000 ($387,500 per unit, $417 per square foot) as a 100% fee simple interest on a free and clear basis. Built in 1955, the two-story building sits above tuck-under parking with additional rear parking, on a 7,351-square-foot lot with approximately 7,440 square feet of gross building area. It offers four one-bedroom, two two-bedroom/two-bath and two three-bedroom/two-bath residences averaging roughly 877 square feet, a family-sized mix that is increasingly rare in West Hollywood's older rental stock. Ownership has already done the heavy lifting: four of the eight units are fully renovated, the exterior features a crisp, modern two-tone facade, and significant capital improvements have been completed, so a new owner can focus capital on revenue-generating interiors rather than deferred maintenance. Renovated units include white flat-panel cabinetry, stone-look counters, stainless steel appliances with gas ranges, wood-look plank flooring, ceiling fans, mirrored closets, updated baths and in-unit washers and dryers in select residences. Inside the property, open-air walkways with wrought-iron railings lead to private unit entries, and an on-site laundry facility serves residents. Seven units are occupied, with one two-bedroom vacant and ready to lease at market. Scheduled rents average about $2,842 per unit against market rents of $3,288, roughly 14% loss-to-lease, and three one-bedrooms leased about $1,000 below the $2,750 market rent represent roughly $36,000 in annual upside on their own. Two units already lease above pro forma, supporting achievable market rents, and under the West Hollywood Rent Stabilization Ordinance, rents can generally be reset to market as units turn over. The property offers a 5.74% current cap rate, 5.95% in Year 1 and 6.81% at market, with net operating income growing from $177,988 today to $184,354 in Year 1 and $211,170 at market rents, an increase of nearly 19%. Current expenses of $89,149 (about $11,144 per unit) include taxes reassessed at the purchase price, with no on-site payroll. The property's cap rate sits about 70 basis points above the 5.03% average of nine recent West Hollywood sales, and its 11.36 GRM is below the 12.82 comparable average. Located between Fountain Avenue and Santa Monica Boulevard, the property puts residents within walking distance of shopping, dining and daily services, minutes from the Sunset Strip, Melrose Avenue and the Design District, and close to employment hubs in Hollywood, Beverly Hills and Century City. With limited new supply, a high-income renter base and steady demand from creative professionals, West Hollywood remains one of Southern California's most resilient rental markets, and its celebrated restaurants, galleries, nightlife and nearby Hollywood Hills trails give renters every reason to stay. The property is available individually or as part of a 23-unit, three-building portfolio with two additional Hollywood assets, making it ideal for 1031 exchange buyers, value-add operators and long-term investors. Tours by appointment only; please do not contact residents or on-site management.