The Setup
Eight units across 7,347 gross SF on a 5,886 SF lot. Two stories and no elevator. The unit mix is two-bedrooms (5 of 8 units), with one studio at 533 SF, one one-bedroom at 708 SF, and a four-bedroom unit at 1,563 SF . Average around 967 SF.
What an Operator Sees
Zislis paid $5.0 million — about $714,000 a door on CoStar's seven-unit sale math — for a 1974 AB1482 walk-up two blocks from the Manhattan Beach Strand, at a 5.29% current cap and a 13.72 GRM.
In most of Los Angeles I would look at that GRM on older rent-controlled stock and move on. Here you are not buying the income cheap. You are paying a premium for Manhattan Beach dirt — the land assessment alone is most of the price — and betting location protects the basis.
CoStar's sale is seven units; the building tab shows eight. I am using seven. I would pass at a 13.72 GRM almost anywhere else. This sale is the reminder of how expensive even RSO becomes when the land underneath it is Manhattan Beach.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
Follow Atlas Brief on X for daily Los Angeles commercial real estate deals, market data and development news:
https://x.com/AtlasBriefLA
Know one other LA owner who'd want this deal? Forward this — reply with their email and I'll add them.
Property and transaction data: CoStar Research.