3005 S Normandie Ave 8 Unit Apartment Building $1,939,036 CAD ($242,380 CAD/Unit) 6.72% Cap Rate Los Angeles, CA 90007

Property Overview?
3005 S Normandie Ave is an eight-unit multifamily investment located in the historic Adams–Normandie neighborhood of Los Angeles, just minutes from USC, Exposition Park, and Downtown LA. The property offers investors a compelling value-add opportunity with strong in-place income, significant rent upside, and multiple levers for NOI growth through unit renovations, parking income, and ancillary revenue streams.
Built in 1960, the 4,837-square-foot building is situated on a 6,600-square-foot LAR3-zoned lot and features a balanced mix of (6) one-bedroom/one-bath units and (2) two-bedroom/one-bath units. Current rents average $1,557 per month compared to market rents of approximately $1,958 per month, representing over 25% upside potential. With nine on-site parking spaces serving eight units, investors can further enhance cash flow through parking fees and utility bill-backs.
Financial performance is strong and scalable, with a 6.44% in-place cap rate projected to rise to 9.22% pro forma and cash-on-cash returns improving from 3.36% to 11.00%. As Los Angeles continues to invest in infrastructure ahead of the 2028 Olympic Games, the Adams–Normandie corridor is poised for continued appreciation, ensuring both durable income and long-term value growth.
Investment Highlights?:
• Attractive Value-Add Play: Offered at $1,395,000 (~$174K per unit / $288 per SF) with meaningful rent growth potential and favorable financing opportunities.
• Immediate Cash Flow: Delivers a 6.72% current cap rate with upside to 9.22% on pro forma as units turn and rents reach market levels.
• One Vacant Unit: Allows for immediate repositioning and rental adjustment to market rate without tenant relocation.
• Substantial Rent Upside: Several units are more than 200% below market rents, presenting a clear path to higher returns.
• Ancillary Income Potential: Nine parking spaces and options for RUBS or storage income provide additional NOI growth.
• Strong Tenant Demand: Prime location near USC, DTLA, and Exposition Park attracts stable renters and minimizes vacancy risk.
• Olympics-Driven Growth: Centrally positioned to benefit from citywide investments and rising demand ahead of the 2028 Los Angeles Olympics.
• Efficient Operations: Manageable size and layout support operational efficiency and long-term scalability for investors.