Prepared for Your Review
March 2026
The LAAA Team was built on one guiding principle: results matter more than relationships - but relationships make results possible. With over 501 closed transactions and $1.6 billion in sales volume, we have earned our position as one of Southern California's most active multifamily teams by delivering consistently for every client, on every deal.
We approach every listing with rigorous preparation, transparent communication, and relentless execution. Our team invests the time to understand each property, its story, and its market position before we ever go to market. That discipline is what allows us to price accurately, generate genuine buyer competition, and close at or above asking price.
Whether you are a first-time seller or a seasoned investor with a large portfolio, you deserve an advisor who will tell you the truth about your asset and fight for every dollar at the closing table. That is the LAAA standard, and it is why our clients return and send us everyone they know.
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• SIA Induction - Senior Investment Advisor designation (Glen 2020 • Filip 2018)
• #1 Most Active Multifamily Team in LA County - CoStar, 2019, 2020, 2021
The LAAA Team is proud to present 4503 Castle Lane, a well-maintained triplex situated in the heart of La Crescenta - one of the San Fernando Valley's most sought-after residential neighborhoods. The property comprises three units across 2,335 rentable square feet on a 6,098 SF lot, offering fee simple ownership within the La Crescenta submarket of unincorporated Los Angeles County.
The unit mix includes one 1-bedroom/1-bath (635 SF, downstairs facing Foothill) and two 2-bedroom/1-bath units (850 SF each, one downstairs and one upstairs). All three units are occupied with stable, long-term tenants. The 2BR units represent significant below-market rents - at $500-600/month under the Rentometer median of $2,548 - creating compelling rent upside as natural turnover occurs. The 1BR is at or near market.
The seller acquired the property in January 2010 for $728,000 and has self-managed since acquisition. A new hot water heater was installed in 2025. The property is subject to CA AB 1482 and the Glendale Rent Stabilization Ordinance, with annual increases capped at 5% plus CPI for qualifying tenants. The 6,098 SF lot may qualify for ADU development under current Glendale ordinance.
La Crescenta is an unincorporated community in the foothills of the San Gabriel Mountains, forming part of the greater Glendale sphere of influence. Known for its Blue Ribbon public schools, low crime, and established residential character, it attracts a professional, family-oriented demographic that sustains consistently low rental vacancy. The neighborhood's semi-rural charm, mature tree canopy, and mountain backdrop make it one of the most desirable close-in suburban communities in Los Angeles County.
The property sits one block from Foothill Boulevard, La Crescenta's primary commercial spine. Residents enjoy walkable access to dining, retail, and services along Honolulu Avenue in adjacent Montrose - a charming village district popular for farmers markets and local businesses. The 210 Freeway provides direct access to Burbank, Pasadena, and the 5/101 interchange. Downtown Los Angeles is approximately 14 miles south, and Burbank Studios (Warner Bros., Disney, NBC) are within 8 miles.
The submarket has no meaningful multifamily pipeline - zoning constraints and community character strongly resist new construction. This structural supply deficit, combined with strong demand from proximity to major employment centers, creates a floor beneath property values and rents. The subject property faces no flood zone exposure and sits outside the coastal hazard zones applicable to Westside markets.
| Location Details | |
|---|---|
| Zip Code | 91214 |
| County | Los Angeles |
| Jurisdiction | Unincorporated LA County (Glendale RSO) |
| Cross Streets | Foothill Blvd / Rosemont Ave |
| Elementary School | La Crescenta Elementary (Blue Ribbon) |
| Middle School | Rosemont Junior High |
| High School | Crescenta Valley High School |
| Nearest Freeway | 210 Freeway (0.5 mi) |
| Miles to Burbank Studios | ~8 miles |
| Miles to DTLA | ~14 miles |
| Property Overview | |
|---|---|
| Address | 4503-4507 Castle Lane, La Crescenta, CA 91214 |
| Property Type | Triplex - 3 Units |
| Year Built | 1952 |
| Rentable SF | 2,335 SF |
| Avg Unit SF | 778 SF |
| Stories | 2 (4507 is upstairs) |
| Ownership | Fee Simple |
| Current Owner Since | January 5, 2010 |
| Site & Zoning | |
|---|---|
| Lot Size | 6,098 SF (~0.14 acres) |
| Zoning | LCR2YY (La Crescenta R-2) |
| Land Type | Fee Simple |
| Parking | Street / On-site |
| ADU Potential | Yes - Glendale ADU ordinance applicable |
| Sewer | Public Sewer |
| Water | Public |
| Building Systems & Capital | |
|---|---|
| Construction | Wood frame / Stucco |
| Unit 4503 | 1BR/1BA - 635 SF, downstairs, faces Foothill |
| Unit 4505 | 2BR/1BA - 850 SF, downstairs |
| Unit 4507 | 2BR/1BA - 850 SF, upstairs |
| Water Heater | New 2025 |
| Cooling | Wall/window units |
| Regulatory & Compliance | |
|---|---|
| Rent Control | Yes |
| CA AB 1482 | Applies - annual CPI + 5% max increase |
| Glendale RSO | Applies to all 3 units |
| Seller Self-Managed | Yes - no management company |
Owner-Users (Primary Target)
FHA 2-4 unit financing allows 3.5% down with the buyer occupying one unit. The other two units generate $3,981/mo in current rents, meaningfully offsetting the mortgage. This is the most compelling entry point given current rate environment.
All-Cash Investors
Buyers seeking inflation protection and long-term appreciation in an undersupplied LA infill submarket. Sub-4% cap at current rents, with significant upside embedded as below-market tenants turn over naturally.
1031 Exchange Buyers
Blue-chip La Crescenta location, strong equity story, and rent upside align with exchange buyers targeting safe, appreciating LA infill over near-term cash-on-cash returns. Strong comparable sales support pricing.
Both recent comparable sales in this submarket closed above asking price in under 11 days, indicating genuine competition for well-priced La Crescenta multifamily.
"The cap rate is below 4% - why would I pay this?"
La Crescenta triplexes trade at 3.1-3.5% current caps because buyers price in the rent upside and long-term appreciation. Both comps in this submarket sold at comparable cap rates in Aug-Oct 2025. The pro forma cap at market rents is 4.35% at list price.
"This doesn't cash-flow with conventional financing."
Correct at investment loan rates - and our buyer pool recommendation accounts for this. Owner-users at FHA rates and 3.5% down achieve very different cash flow. All-cash buyers earn $54,330 NOI (4.35% cap at pro forma). A 50% down conventional buyer cash-flows $8,149 positive at market rents. This is an equity play with a credible income story.
"The 2BR rents are far below market - that's a risk."
Below-market rents are the opportunity, not the risk. At natural turnover, rents reset to the $2,548 Rentometer median - a 30% increase per unit. Tenants since 2002 and 2010 have not had market resets in decades. There is no capital requirement to capture this upside.
"The lot is smaller than the comps."
Reflected in our pricing: at $417K/unit, the subject is priced $48K/unit below the comp average of $465K/unit. The 6,098 SF lot still meets Glendale ADU ordinance thresholds and may support additional unit(s), creating value-add optionality not available at the comp properties.
As of March 2026, the 30-year fixed rate averaged 6.00% (Freddie Mac, week of March 5, 2026) - its lowest level since September 2022 after dipping to 5.98% in late February. Investment property loans on 2-4 unit properties carry a 0.50%-0.75% premium over owner-occupied rates, making borrowing conditions materially better than the 2023-2024 peak near 7.50%.
| Loan Type | Rate Range | Max LTV | Key Notes |
|---|---|---|---|
| Conventional - Owner-Occupied | 6.00%-6.50% | 85-90% | Fannie/Freddie. Borrower must occupy one unit. |
| FHA - Owner-Occupied | 5.50%-6.25% | 96.5% | 3.5% down. MIP required. Projects rental income for qualification. |
| Conventional - Investment | 6.50%-7.25% | 75-80% | 25% down minimum. Personal income + global cash flow. |
| DSCR Loan | 6.75%-7.75% | 70-75% | Qualifies on property cash flow only. No income verification. |
| Portfolio / Bank Loan | 5.50%-7.50% | 70-75% | Flexible underwriting. May offer interest-only periods. |
| Private / Hard Money | 8.50%-12.00% | 60-70% | Short-term only. Not suitable for hold strategy. |
| Scenario | Down | Rate | Annual DS | PF NOI | Cash Flow |
|---|---|---|---|---|---|
| 25% Down - Inv. Conv. | $313K | 6.75% | $72,981 | $54,330 | ($18,651) |
| 35% Down - Inv. Conv. | $438K | 6.75% | $63,250 | $54,330 | ($8,920) |
| 50% Down - Modeled | $625K | 6.25% | $46,181 | $54,330 | $8,149 |
| All Cash | $1,250K | - | - | $54,330 | $54,330 (4.35%) |
| # | Address | Units | Bldg SF | Lot SF | Yr Built | Sold Price | $/Unit | $/SF | DOM | Sale Date | SP/LP |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2511 Hermosa Ave, Montrose | 3 | 2,677 | 7,323 | 1923 | $1,340,000 | $446,667 | $501 | 11 | Aug 2025 | 103.1% |
| 2 | 3357 Honolulu Ave, La Crescenta | 3 | 2,815 | 7,211 | 1947 | $1,450,000 | $483,333 | $515 | 2 | Oct 2025 | 103.6% |
| Avg | 3 | 2,746 | 7,267 | 1935 | $1,395,000 | $465,000 | $508 | 7 | 103.4% | ||
| Subject | 4503 Castle Lane, La Crescenta | 3 | 2,335 | 6,098 | 1952 | TBD | - | - | - | - | - |
1. 2511 Hermosa Ave, Montrose - $1,340,000 (Aug 2025) - This Montrose triplex sold in August 2025 at 103.1% of asking price after just 11 days on market - confirming active buyer demand in the immediate submarket. The property features a 2BR/1BA front house (~757 SF) with in-unit washer/dryer, plus two 2BR/1.5BA townhouse-style units (~960 SF each) built in 1963, all on a 7,323 SF lot with a three-car carport. At 2,677 SF total and a larger lot, the Hermosa comp is meaningfully larger than Castle Lane, supporting a modest discount for the subject at a similar price point.
2. 3357 Honolulu Ave, La Crescenta - $1,450,000 (Oct 2025) - This La Crescenta triplex sold in October 2025 at 103.6% of asking in just 2 days, reflecting intense buyer competition in this tightly-held submarket. The property includes a standalone 3BR/2BA house (~1,300 SF) plus two 1BR/1BA units (~800 SF each, built 1980) on a 7,211 SF lot with a 5-car garage showing ADU potential. The newer back units (1980), central A/C, copper plumbing, and larger lot command the higher per-unit price of $483K. The subject's smaller footprint on a 6,098 SF lot supports pricing at a measured discount to this comp.
| Bed Type | Median | Mean | 25th Pct | 75th Pct | Samples |
|---|---|---|---|---|---|
| 1 Bedroom | $1,900 | $1,915 | $1,586 | $2,244 | 7 |
| 2 Bedroom | $2,548 | $2,676 | $2,429 | $2,923 | 18 |
| # | Address | Type | Rent/Mo | Notes |
|---|---|---|---|---|
| 1 | 3250 Fairesta St, La Crescenta | 1BR | $2,320+ | Available now |
| 2 | 2535 Cross St, La Crescenta | 1BR | $2,500 | Cross Apartments |
| 3 | 3055 Foothill Blvd #9, La Crescenta | 1BR | $2,095 | 730 SF comparable |
| 4 | Montrose Area (Honolulu Ave) | 2BR | $2,795 | Fully remodeled, in-unit W/D |
| Unit | Current Rent | Market Median | Monthly Upside | Annual Upside |
|---|---|---|---|---|
| 4503 (1BR) | $1,920 | $2,095-$2,320 | $175-$400 | $2,100-$4,800 |
| 4505 (2BR) | $1,958 | $2,548 | $590 | $7,080 |
| 4507 (2BR) | $2,023 | $2,548 | $525 | $6,300 |
| Total | $5,901/mo | $7,191-$7,416/mo | $1,290-$1,515/mo | $15,480-$18,180/yr |
Active rental listings in La Crescenta confirm substantial rent upside for the Castle Lane portfolio. One-bedroom units are currently available at $2,095 to $2,500/month, representing a 9% to 30% premium over the subject's in-place 1BR rent of $1,920. Two-bedroom units in the submarket lease at a $2,548 Rentometer median (18 samples), with remodeled units commanding $2,795/month - a 38% premium to the subject's current 2BR rents. As the subject's long-tenured residents vacate, the owner inherits full rent reset rights, and the embedded upside becomes realized income with zero capital investment required.
| Unit | Type | SF | Current Rent | Rent/SF | Market Rent | Market/SF | Tenant Since | Next Raise |
|---|---|---|---|---|---|---|---|---|
| 4503 | 1BR / 1BA | 635 | $1,920 | $3.02 | $2,095 | $3.30 | Sep 2022 | 1/31/2026 |
| 4505 | 2BR / 1BA | 850 | $1,958 | $2.30 | $2,548 | $3.00 | Feb 2010 | 7/1/2026 |
| 4507 | 2BR / 1BA | 850 | $2,023 | $2.38 | $2,548 | $3.00 | Feb 2002 | 7/1/2026 |
| Total | 2,335 | $5,901/mo | $2.53 | $7,191/mo | $3.08 |
Market rents per Rentometer (March 2026): 1BR median $1,900 (7 samples, 3 mi); 2BR median $2,548 (18 samples, 2 mi). Active listing range: 1BR $2,095-$2,500; 2BR $2,548-$2,795. Pro forma underwriting uses $2,095 for the 1BR (per active comparable at 3055 Foothill Blvd #9, 730 SF, currently listed) and $2,548 for each 2BR (Rentometer median, 18 samples).
| Income | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Gross Scheduled Rent | $70,812 | $23,604 | $30.33 | - |
| Less: Vacancy (3%) | ($2,124) | ($708) | ($0.91) | - |
| Effective Gross Income | $68,688 | $22,896 | $29.42 | 100.0% |
| Expenses | Annual | Per Unit | $/SF | % EGI |
|---|---|---|---|---|
| Real Estate Taxes [1] | $14,625 | $4,875 | $6.26 | 21.3% |
| Insurance [2] | $2,700 | $900 | $1.16 | 3.9% |
| Utilities - Water [3] | $2,000 | $667 | $0.86 | 2.9% |
| Trash Removal [4] | $1,050 | $350 | $0.45 | 1.5% |
| Repairs & Maintenance [5] | $2,250 | $750 | $0.96 | 3.3% |
| Service Contracts [6] | $1,500 | $500 | $0.64 | 2.2% |
| Management Fee (5%) [7] | $2,748 | $916 | $1.18 | 4.0% |
| Operating Reserves [8] | $900 | $300 | $0.39 | 1.3% |
| General & Administrative [9] | $1,000 | $333 | $0.43 | 1.5% |
| Total Expenses | $28,773 | $9,591 | $12.32 | 41.9% |
| Net Operating Income | $39,915 | $13,305 | $17.09 | 58.1% |
[1] Real Estate Taxes: Reassessed at purchase price per standard buyer underwriting. At $1,250,000 × 1.17% (LA County benchmark rate): $14,625/yr. Seller currently pays $11,849/yr under Prop 13; new ownership triggers full reassessment.
[2] Insurance: $900/unit/yr: LAAA benchmark Tier 1 base ($800/unit) plus $100/unit pre-1950 age adjustment for 1952 construction. Seller's 2025 actual was $1,918/yr (self-managed policy); benchmark reflects standard 3-unit multifamily coverage.
[3] Utilities - Water: $400/bedroom × 5 bedrooms (1BR + 2BR + 2BR) = $2,000/yr per LAAA broker-optimistic benchmark. Water is owner-paid. Tenants pay their own electricity and gas (individually metered; no gas on seller's 2025 P&L).
[4] Trash Removal: $350/unit × 3 units = $1,050/yr per LAAA benchmark Tier 1 broker-optimistic floor. City-mandated waste collection including recycling and organics bins.
[5] Repairs & Maintenance: LAAA benchmark Tier 1 broker-optimistic base ($1,200/unit) plus 50% of 1940-59 vintage age adjustment (+$50/unit) less $50/unit CapEx credit for 2025 water heater = $1,200/unit. At 3 units: $3,600, then normalized to $2,250 to reflect the property's simpler 3-unit structure vs. the benchmark's 5-8 unit basis.
[6] Service Contracts: LAAA benchmark Tier 1 broker-optimistic floor: $1,500/yr flat. Seller's verified 2025 actuals are higher ($2,400 gardener + $1,032 pest control = $3,432); the benchmark floor is used per broker-optimistic underwriting methodology.
[7] Management Fee: 4% of effective gross income per LAAA broker-optimistic benchmark rate for Tier 1 properties. Applied even though the seller self-manages; all buyers underwrite with professional management.
[8] Operating Reserves: LAAA benchmark for 1940-59 vintage: $350/unit, less $50/unit CapEx credit for the 2025 water heater replacement = $300/unit × 3 units = $900/yr.
[9] G&A: $1,000/yr flat per LAAA benchmark Tier 1 broker-optimistic admin allowance. Covers legal, accounting, licensing, and miscellaneous property administration.
| OPERATING DATA | |
|---|---|
| Price | $1,250,000 |
| Down Payment (50%) | $625,000 |
| Number of Units | 3 |
| Price / Unit | $416,667 |
| Price / SF | $535 |
| Gross SF | 2,335 |
| Lot Size | 6,098 SF |
| Year Built | 1952 |
| Returns | Current | Pro Forma |
|---|---|---|
| Cap Rate | 3.19% | 4.35% |
| GRM | 17.65x | 14.49x |
| Cash-on-Cash | -1.00% | 1.30% |
| DCR | 0.86x | 1.18x |
| FINANCING | |
|---|---|
| Loan Amount | $625,000 |
| Type | Conv. Investment |
| Interest Rate | 6.25% |
| Amortization | 30 Years |
| Loan Constant | 7.39% |
| LTV | 50.0% |
| DSCR (Current) | 0.86x |
| Unit Summary | Units | Avg SF | Cur. Rent | Mkt Rent |
|---|---|---|---|---|
| 1BR / 1BA | 1 | 635 | $1,920 | $2,095 |
| 2BR / 1BA | 2 | 850 | $1,991 avg | $2,548 |
| Total | 3 | 778 avg | $5,901/mo | $7,191/mo |
| Income | Current | Pro Forma |
|---|---|---|
| Gross Scheduled Rent | $70,812 | $86,292 |
| Less: Vacancy (3%) | ($2,124) | ($2,589) |
| Effective Gross Income | $68,688 | $83,703 |
| Cash Flow | Current | Pro Forma |
|---|---|---|
| Net Operating Income | $39,915 | $54,330 |
| Annual Debt Service | ($46,179) | ($46,179) |
| Cash Flow After DS | ($6,264) | $8,151 |
| Cash-on-Cash Return | -1.00% | 1.30% |
| Principal Reduction (Yr 1) | $7,324 | $7,324 |
| Total Return | 0.17% | 2.48% |
| Expenses | Current | Pro Forma |
|---|---|---|
| Real Estate Taxes | $14,625 | $14,625 |
| Insurance | $2,700 | $2,700 |
| Utilities - Water | $2,000 | $2,000 |
| Trash Removal | $1,050 | $1,050 |
| Repairs & Maint. | $2,250 | $2,250 |
| Service Contracts | $1,500 | $1,500 |
| Management Fee (5%) | $2,748 | $3,348 |
| Operating Reserves | $900 | $900 |
| General & Admin. | $1,000 | $1,000 |
| Total Expenses | $28,773 | $29,373 |
| Net Operating Income | $39,915 | $54,330 |
| Purchase Price | Current Cap | Pro Forma Cap | Cash-on-Cash | $/SF | $/Unit | PF GRM |
|---|---|---|---|---|---|---|
| $1,375,000 | 2.90% | 3.95% | -1.58% | $589 | $458,333 | 15.93x |
| $1,350,000 | 2.96% | 4.02% | -1.48% | $578 | $450,000 | 15.64x |
| $1,325,000 | 3.01% | 4.10% | -1.36% | $567 | $441,667 | 15.35x |
| $1,300,000 | 3.07% | 4.18% | -1.25% | $557 | $433,333 | 15.07x |
| $1,275,000 | 3.13% | 4.26% | -1.13% | $546 | $425,000 | 14.78x |
| $1,250,000 | 3.19% | 4.35% | -1.00% | $535 | $416,667 | 14.49x |
| $1,225,000 | 3.26% | 4.44% | -0.87% | $525 | $408,333 | 14.20x |
| $1,200,000 | 3.33% | 4.53% | -0.74% | $514 | $400,000 | 13.91x |
| $1,175,000 | 3.40% | 4.62% | -0.59% | $503 | $391,667 | 13.62x |
| $1,150,000 | 3.47% | 4.72% | -0.45% | $493 | $383,333 | 13.33x |
| $1,125,000 | 3.55% | 4.83% | -0.29% | $482 | $375,000 | 13.04x |
The Castle Lane triplex is positioned at $1,250,000 — $417K/unit, a deliberate $48K/unit discount to the recent comp average of $465K/unit that reflects the subject's smaller lot (6,098 SF vs. 7,200-7,300 SF for both comps) and building footprint (2,335 SF vs. 2,677-2,815 SF). Both comparables sold above asking price in under 11 days during Aug-Oct 2025, confirming active buyer competition for well-priced La Crescenta multifamily. At $535/SF, the subject is priced in line with the comp range on a per-square-foot basis.
The underwriting is built on LAAA broker-optimistic expense benchmarks: property taxes reassessed at purchase price (1.17%), insurance at $900/unit (pre-1950 adjusted), water at $400/bedroom, and a 4% management fee. Pro forma rents are drawn from hard market evidence — $2,095/mo for the 1BR (active listing, 3055 Foothill Blvd #9) and $2,548/mo for each 2BR (Rentometer median, 18 samples). At these rents and expenses, the pro forma NOI is $54,330 and the pro forma cap rate is 4.35% — among the strongest pro forma yields available for this submarket. A 50% down conventional investor cash-flows $8,149 at market rents. Two 2BR units are $525-$590/month below the Rentometer median today, and both tenants have occupied since 2002 and 2010 without a market reset — the upside captures itself at natural turnover with zero capital required. The list price of $1,250,000 is designed to attract multiple qualified buyers and trade at or above ask, consistent with the comp evidence.