Notes to the Operating Statement
[1] Additional Income: No additional income is collected at the property.
[2] Scheduled Gross Income: Current scheduled rent from the July 31, 2026 rent roll for the eight original units, plus the two 2025 ADUs at their asking rents. Units 101 and 102 and both ADUs are vacant; all four are carried at asking rents of $2,250 and $2,450.
[3] Vacancy Reserve: Underwritten at 3.0% of scheduled gross income.
[4] Real Estate Taxes: Underwritten at reassessment on the recommended list price at the 1.23% effective rate for tax rate area 7-695. Current taxes are $19,141 (2025) on a $1,510,791 assessed value.
[5] Insurance: Pro forma allowance per the underwriting model; obtain current quotes during diligence.
[6] Utilities - Electric: Annualized from the July 2026 fiscal year-to-date operating statement (Focus Property Services). Trailing figures reflect the original eight units; ADU utility costs to be confirmed.
[7] Utilities - Water & Sewer: Annualized from the July 2026 fiscal year-to-date operating statement (Focus Property Services). Trailing figures reflect the original eight units; ADU utility costs to be confirmed.
[8] Trash Removal: Annualized from the July 2026 fiscal year-to-date operating statement and grossed up for full-occupancy service across all ten units.
[9] Repairs & Maintenance: Normalized allowance informed by trailing operations; verify the trailing 12-month repair history during diligence.
[10] Landscaping: Normalized allowance informed by trailing operations.
[11] Pest Control: Normalized allowance informed by trailing operations.
[12] General & Administrative: Underwriting allowance per the pricing model.
[13] Miscellaneous: Underwriting allowance per the pricing model.
[14] Replacement Reserves: Replacement reserve allowance of $600 per unit per year.
[15] Operating Reserves: Operating reserve allowance of $200 per unit per year.
[16] Management Fee: Underwritten at 5.0% of effective gross income. The property is currently managed by a third-party manager, Focus Property Services Inc.
Summary
|
| Price | $2,840,000 |
| Number of Units | 10 |
| Price per Unit | $284,000 |
| Price per SF | $430.83 |
| Current GRM | 10.28 |
| Market GRM | 9.99 |
| Current Cap Rate (LAAA calculation: current NOI / recommended value) | 6.50% |
| Market Cap Rate (LAAA calculation: market NOI / recommended value) | 6.76% |
|
| Loan Amount | $1,846,000 |
| Down Payment | $994,000 |
| Interest Rate | 6.25% |
| Amortization | 30 years |
| DCR | 1.35 |
The recommended list price is $2,840,000, within a supported range of $2.75M to $2.95M. On the ten units with the four vacant units at asking rents, the price reflects a 6.50% current cap rate and 10.28 GRM, improving to a 6.76% cap rate at underwritten market rents on turnover. With occupied rents already within about 3% of underwritten market levels, the price is set on day-one yield rather than projected upside. Real estate taxes are underwritten at reassessment on the list price.
At $284,000 per unit the price sits in the upper half of the $217,000 to $300,000 per unit range set by the comparable sales, every one of which is unrenovated 1920s through 1960s product. The 2025 renovation, the two new-construction ADUs, and a 6.50% day-one yield at the top of the 5.17% to 6.52% band on older, un-upgraded buildings are what carry that position.
The lease-up of the four vacant units is the primary execution item; at asking rents they represent $112,800 of the $276,240 annual scheduled gross income.
Recommended List Price
$2,840,000
Supported value range: $2,750,000 to $2,950,000
Disclosures
Rent roll and operating figures for the original eight units are transcribed from the July 31, 2026 rent roll and July 2026 cash flow statement prepared by Focus Property Services Inc. The two ADUs do not yet appear on the property management rent roll.
Units 101 and 102 and both ADUs are vacant; scheduled income includes all four at asking rents of $2,250 (one-bedroom) and $2,450 (ADU).
The property was originally constructed in 1925 and was fully renovated in 2025, when the two ADUs were completed, per ownership. Renovation scope, ADU permits, certificates of occupancy, and ADU square footage (600 SF each per ownership) should be independently verified.
Total building area of approximately 6,592 SF includes the ADU square footage; the original building is 5,392 SF per county records.
The property is subject to the City of Pasadena rent stabilization ordinance (Measure H). Annual increases on occupied units are limited by the ordinance; state law permits re-rent at market on vacancy. New-construction ADUs may be exempt from local rent caps under state law; verify applicability.
Comparable sale data is drawn from public records and industry databases and should be independently verified. The 1757 E Villa St sale is carried at the county-recorded price of $1,457,000 (grant deed 26-0505812); the seller trust carried a $1,000,000 loan, so that price reflects seller financing terms.
Interior and exterior photography of the renovated building is published by the property's own management company; additional exterior photography was taken by the listing team in August 2026.
This analysis is a broker opinion of value, not an appraisal. All figures should be independently verified during due diligence.
