1225 W 166th St

Investment Highlights

Property Overview

1225 W. 166th Street presents a rare opportunity to acquire a meticulously maintained 1980s construction apartment asset in the premier pocket of Gardena, south of Prairie Avenue. This property combines strong in-place cash flow, an ideal unit mix of 22 oversized two-bedroom/two-bathroom units, extensive renovations, abundant parking, and significant future upside. The newer vintage construction allows for premium rents while reducing deferred maintenance concerns common in older Southern California apartment buildings. The property boasts an exceptional parking ratio with 22 private garages and 28 on-site spaces, a rare amenity that drives tenant demand. The current ownership has extensively renovated 15 of the 22 units, ensuring immediate operational strength and leaving meaningful rental upside for a new owner. The building is fully leased with a strong tenant profile and has been professionally maintained. What truly distinguishes this asset is its extraordinary ADU/additional unit potential. The property is uniquely positioned to add five new two-bedroom/two-bathroom units without sacrificing existing parking. These additional units are projected to generate approximately $165,000 in additional annual gross income with an estimated construction cost of $650,000, equating to an extraordinary sub-4 GRM on cost. Upon completion, investors have the potential to drive the property's GRM below 10 and push capitalization rates toward the 7% range, offering an 8%+ stabilized return profile in a well-located coastal-adjacent Southern California multifamily investment.