Filip NiculeteSenior Managing Director, Investments
CA DRE #01905352
(818) 212-2748
filip.niculete@marcusmillichap.com
Glen ScherSenior Managing Director, Investments
CA DRE #01962976
(818) 212-2808
glen.scher@marcusmillichap.com
This Offering Memorandum has been prepared by Marcus & Millichap (“Broker”) for use by a limited number of qualified parties evaluating a potential acquisition of the property located at 3551–3559 Siskiyou Street, Los Angeles, CA 90023 (the “Property”). It contains selected information about the Property and does not purport to be all-inclusive or to contain all of the information a prospective purchaser may require.
The information contained herein has been obtained from sources believed to be reliable; however, Broker has not verified, and will not verify, any of the information contained herein, nor has Broker conducted any investigation regarding these matters. Broker makes no guarantee, warranty or representation, express or implied, as to the accuracy or completeness of the information provided.
All financial projections, pro forma rents, and operating assumptions are provided for general reference, are based on assumptions relating to the general economy, market conditions, competition and other factors beyond Broker’s control, and are subject to material variation. The Property is a Real Estate Owned (REO) asset and is offered on an “as-is, where-is” basis.
Non-Endorsement Notice
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified herein. The presence of any name or trade name is solely for identification purposes and is not intended to indicate any affiliation with, or sponsorship or endorsement by, Marcus & Millichap.
Prospective purchasers should make their own independent investigation and rely solely upon such investigation, including verification of all rental income, lease terms, square footage, lot size, permitted and un-permitted spaces, unit/bedroom/bathroom counts, regulatory status, and operating expenses. The Property is subject to the City of Los Angeles Rent Stabilization Ordinance (RSO); buyers should independently confirm all applicable rent-control, registration and relocation obligations.
Recorded matters affecting title — including a recorded notice of intent to withdraw units from rental housing use (Ellis Act) executed by a prior owner, and a prior-owner litigation notice — are disclosed in the preliminary title report and should be reviewed by buyer and buyer’s counsel as part of due diligence.
By acceptance of this Offering Memorandum, you agree that the information contained herein is confidential, that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, and that you will not disclose it to any other party without the prior written authorization of Broker. The Owner reserves the right, at its sole discretion, to reject any and all expressions of interest or offers and to terminate discussions at any time.
A seven-unit, two-parcel Tudor bungalow community in Boyle Heights — six homes plus two brand-new 2023 ADUs — offered free-and-clear REO at $1,100,000, with three legacy units ~70% under market driving a clear path to a 10.31% stabilized yield.
Six Tudor/bungalow structures across two contiguous parcels (±11,225 SF lot), built 1929 and modernized with two fully-permitted 2023 ADUs. All-2BR mix, ±5,302 rentable SF, 8 gated parking spaces.
Three legacy units rent at $560–$641 vs a $2,100 market. Mark-to-market on natural turnover grows scheduled rent +38% and NOI +66% — no construction or entitlement required.
At $157,143/unit and $207/SF, the going-in basis sits below replacement cost and recent Boyle Heights trades — a 6.20% in-place cap with embedded room above the underwritten $2,100 rent.
Marcus & Millichap is pleased to present Siskiyou Street Apartments, a seven-unit apartment community spanning two contiguous parcels at 3551–3559 Siskiyou Street in the heart of Boyle Heights. The Property comprises six separate Tudor-style bungalow structures — a charming, low-density configuration original to its 1929 vintage — set on a generous ±11,225-square-foot gated lot with eight on-site parking spaces and rear storage.
The unit mix is entirely two-bedroom: six 2BD/1BA homes and one 2BD/1.5BA, totaling ±5,302 rentable square feet. Two of the seven units are brand-new 2023 accessory dwelling units — fully permitted, separately metered, and already leased at market — that layer modern, durable income and reduced deferred-maintenance exposure onto a vintage asset. The all-2BR composition gives an incoming owner the deepest, most resilient renter pool in East Los Angeles and a simple, repeatable operating profile.
The investment thesis is straightforward. Three legacy units currently rent between $560 and $641 per month — roughly 70% below the $2,100 market level — the product of long tenancy under the City of Los Angeles Rent Stabilization Ordinance. As these units turn naturally, scheduled rent grows approximately 38% and net operating income climbs from $68,149 to $113,421, a 66% increase, without any construction, entitlement, or change to the unit count. Notably, the underwritten $2,100 stabilized rent sits below the $2,337 Boyle Heights 2-bedroom average, leaving additional embedded upside beyond the stated pro forma.
Offered free-and-clear as a lender-owned (REO) asset on an as-is basis, the Property presents a clean, motivated disposition at $157,143 per unit and $207 per square foot — a going-in 6.20% cap rate with a clear, near-term path to a 10.31% stabilized yield.
Quick Facts
Site Composition
Site & Structure
Systems & Construction
Zoning & Regulatory
Building-by-Building
Seven homes across six low-density Tudor/bungalow structures — an all-2BR rent roll that is simple to operate, easy to re-tenant, and well suited to the deep Boyle Heights renter pool.
SF and lot size per assessor/appraiser, to be buyer-verified. RSO registration, the recorded Ellis-Act notice and a prior-owner litigation matter (preliminary report) to be reviewed by buyer’s counsel. Property reassessed at sale per Prop 13.
| Unit | Type | SF | In-Place | Market | Status |
|---|---|---|---|---|---|
| 3551 | 2BD / 1.5BA | 800 | $2,150 | $2,200 | Near Mkt |
| 3553 | 2BD / 1BA | 750 | $560 | $2,100 | Upside |
| 3553½ | 2BD / 1BA | 750 | $2,100 | $2,100 | ADU ’23 |
| 3555 | 2BD / 1BA | 750 | $560 | $2,100 | Upside |
| 3557 | 2BD / 1BA | 750 | $641 | $2,100 | Upside |
| 3557½ | 2BD / 1BA | 750 | $2,100 | $2,100 | ADU ’23 |
| 3559 | 2BD / 1BA | 750 | $2,595 | $2,100 | At Mkt |
| Total / Avg | 7 Units | 5,302 | $10,706 | $14,800 | — |
| Unit Type | Qty | SF | In-Place | Market |
|---|---|---|---|---|
| 2BD / 1BA | 6 | 750 | $1,426 | $2,100 |
| 2BD / 1.5BA | 1 | 800 | $2,150 | $2,200 |
| Weighted Avg | 7 | 757 | $1,529 | $2,114 |
Current Rent vs. Market Rent
All upside is rent-roll mark-to-market on natural turnover — no entitlement, construction, or unit-count change required.
| Income | Current | Pro Forma | Per Unit |
|---|---|---|---|
| Gross Potential Rent | $177,600 | $177,600 | $25,371 |
| Loss / Gain to Lease | ($49,129) | $0 | — |
| Gross Scheduled Rent | $128,471 | $177,600 | $25,371 |
| Vacancy & Collection (3%) | ($3,854) | ($5,328) | ($761) |
| Effective Gross Income | $124,617 | $172,272 | $24,610 |
| Expenses | Current | Pro Forma | Per Unit |
|---|---|---|---|
| Real Estate Taxes | $13,200 | $13,200 | $1,886 |
| Insurance | $6,628 | $6,628 | $947 |
| Utilities | $12,600 | $12,600 | $1,800 |
| Trash Removal | $3,360 | $3,360 | $480 |
| Repairs & Maintenance | $9,000 | $9,000 | $1,286 |
| Service Contracts | $3,000 | $3,000 | $429 |
| General & Administrative | $1,050 | $1,050 | $150 |
| Operating Reserves | $1,400 | $1,400 | $200 |
| Management (5%) | $6,231 | $8,614 | $1,231 |
| Total Operating Expenses | $56,468 | $58,851 | $8,407 |
| Net Operating Income | $68,149 | $113,421 | $16,203 |
The expense load is largely fixed — taxes, insurance, utilities and contracts hold flat into pro forma. Because the upside is revenue-driven, the operating ratio compresses from 45.3% to 34.2%, dropping nearly all incremental income straight to NOI.
Underwriting Notes
Taxes reflect underwritten basis; reassessed at sale per Prop 13. Management at 5.0% of EGI; vacancy at 3.0% current and pro forma. Buyer to verify all income and expenses.
Current vs. Stabilized Returns
Cash Flow After Debt Service
A 4.98% → 15.27% cash-on-cash trajectory on $440,000 of equity as the rent roll normalizes.
Returns Summary
| Metric | Current | Pro Forma |
|---|---|---|
| Cap Rate | 6.20% | 10.31% |
| GRM | 8.56 | 6.19 |
| Cash-on-Cash | 4.98% | 15.27% |
| Debt Coverage | 1.47 | 2.45 |
| Total Return | 6.91% | 17.32% |
| NOI | $68,149 | $113,421 |
Proposed Financing
Financing illustrative and subject to change. Contact Marcus & Millichap Capital Corporation.
Gross rent multiplier compresses as in-place rent marks to market.
Going-in cap to stabilized yield on the same basis.
Where the Subject Prices — Cap-Rate Positioning
At $1,100,000 the 6.20% going-in cap sits squarely inside the 5.8%–6.5% range at which value-add Boyle Heights product trades, while the 10.31% stabilized yield rewards the buyer who executes a simple mark-to-market plan. The $157K/unit basis is below replacement cost and recent submarket trades.
| Comparable | Units | $ Price | $/Unit | $/SF | Cap |
|---|---|---|---|---|---|
| 1 — address | — | — | — | — | — |
| 2 — address | — | — | — | — | — |
| 3 — address | — | — | — | — | — |
| 4 — address | — | — | — | — | — |
| Subject — Siskiyou St | 7 | $1.10M | $157,143 | $207 | 6.20% |
Subject Snapshot
Stabilized LA Class-B multifamily trades roughly 4.75%–5.50%; value-add East LA / Boyle Heights product prices wider, with current submarket listings in the 5.8%–6.5% range. The subject’s 6.20% going-in cap and $157K/unit basis price it competitively for a value-add buyer.
| 2BD Comparable | Asking | vs. PF |
|---|---|---|
| 1 · 405 N Soto Street | $2,534 | +$434 |
| 2 · 3030 Whittier Boulevard | $2,395 | +$295 |
| 3 · 1023 Tremont Street | $2,008 | −$92 |
| 4 · 1102 Stone Street | $1,948 | −$152 |
| Boyle Heights 2BR — Market Avg | $2,337 | +$237 |
| Subject — Pro Forma Target | $2,100 | — |
The subject’s $2,100 pro-forma 2BR rent sits below the $2,337 Boyle Heights 2-bedroom market average — and below several active comps near $2,400–$2,500 — leaving additional embedded upside beyond the underwritten figure. Observed 2BR range: $1,625–$3,298.
±3 miles to the DTLA job core — a short hop west across the river.
Direct to the I-5, I-10, SR-60 & US-101 — among the basin’s most connected spots.
Metro E (Gold) Line at Soto & Indiana links tenants car-free to DTLA & USC Medical.
Low-rise historic fabric and minimal new supply keep vacancy tight.
Boyle Heights sits immediately east of the Los Angeles River and Downtown, ringed by the 5, 10, 60 and 101 freeways with Metro E (Gold) Line service at Soto and Indiana. Its historic, low-rise housing stock and minimal new supply support consistent occupancy and steady rent growth for well-located vintage assets.
Renter Share — Subject vs. City vs. County
Boyle Heights is a dense, predominantly renter-occupied neighborhood with limited new multifamily supply — a structural backdrop that supports stable occupancy and long-run rent growth for well-located vintage assets like Siskiyou Street.
