Properties | El Encanto

El Encanto

171-Unit Apartment Community

14040 Foothill Blvd | Sylmar, CA

Sales Price: Private

Units: 171

Price per Unit: N/A

Price per Sq. Ft.: N/A

Year Built: 1985

Lot Size Sq. Ft.: 138,956

Gross Bldg. Sq. Ft.: 176,160

Net Rentable Sq. Ft.: 144,325

On Market Date: 2/24/16

Close of Escrow: 6/21/16

The Harris Group, as the exclusive listing agent, is pleased to announce the sale of El Encanto, a 171-unit apartment community located in the North San Fernando Valley. Built in 1985, El Encanto offers investors the opportunity to acquire a non rent controlled asset located in a market with strong demographics and unique accessibility to major employment hubs.

Comprised of a three story building situated on more than three acres of land, the low density garden-style community offers residents open space as well as generous common area amenities including a swimming pool and spa, central courtyard, picnic area with three barbecue grills, and on-site laundry. The property consists of one-bedroom, two-bedroom, and three-bedroom units ranging from 750 to 1,025 square feet that feature white appliances (range & dishwasher), formica countertops, white partial overlay cabinetry, vinyl flooring in the kitchen and bathrooms, and carpeting in the living areas and bedrooms. Investors have the opportunity to implement a strategic enhancement of the unit interiors which should increase rental income by approximately 13% over the next two years.  

Given the anticipated growth in the submarket, the value-add opportunity, and rents at a discount to comparable 1980s assets in the San Fernando Valley, investors will have the opportunity to capture meaningful anticipated growth that should provide a durable income stream over the long term.

  • Constructed in 1985—Not Subject to Rent Control
  • El Encanto Offers Investors the Opportunity to Increase Rental Income by Approximately 13% Via Interior and Common Area Renovations
  • Unit Mix Comprised of One-Bedroom, Two-Bedroom, and Three-Bedroom Floorplans
  • Well Insulated Against Newer Product as Rising Land and Construction Costs Require Developers of New Projects to Charge Higher Rents
  • Capital Upgrades Completed Since 2013 Include: Roof Replacement, Deck Coating, Pool & Spa Replaster, and a New Boiler
  • Strong Momentum in the Market With 5.0% Year-Over-Year Rent Growth (REIS Services, LLC)
  • Attractively Priced to a 5.29% Cap Rate on COE Operations with Approximately  100 bps of Upside Through a Strategic Renovation
  • Offered Free and Clear of Debt—Allows Investors to Capitalize on Historically Low Interest Rates
  • Average Household Incomes Have Increased by 36.3% Since 2000 and are Projected to Increase by an Additional 14.7% by 2019
  • Approximately 2 Miles from the Metrolink Station Which Provides Traffic-Free Transit to Downtown Los Angeles in Less Than 40 Minutes