6605 Denver Ave is a 4 unit apartment building for sale in South Los Angeles at $645,000, or $161,250 per unit, and it comes with ADU plans submitted for four more units at the back of the lot. The building is fully occupied today, so a buyer collects rent on day one while working toward a path from 4 units to 8 on the same parcel.
Most small apartment buildings in South LA share the same limit: the building fills the lot, and the only way to grow income is to wait on rents. This one is different. The existing building sits at the front of a deep lot and the back of the lot is wide open. On a listing like this, the first thing I look at is not the building. It is the yard behind it, because that is where the next four units go.
The property
6605 Denver Ave is a two story building built in 1953 with approximately 2,332 square feet of living area. All four units are one bedroom, one bath. Gas and electric are separately metered, so the tenants pay their own. The lot is 5,402 square feet, 40 feet wide by 135 feet deep, and it is zoned LAR2.
All four units are occupied. Current rents run from $746 to $1,030 per month and total $3,362 per month, which is $40,339 per year.
The numbers
→ List price: $645,000 | $161,250 per unit | $276.59 per SF
→ Current: 3.75% CAP | 15.99 GRM | $40,339 gross scheduled rent
→ Stabilized: 8.48% CAP | 7.07 GRM | $91,200 gross scheduled rent
→ Lot: 5,402 SF | 40' x 135' | LAR2
→ ADU: plans submitted for a new 2 story, 4 unit detached ADU of 1,880 SF
The stabilized figures use an estimated rent of $1,900 per month for each one bedroom unit. Expenses are estimated at 40% of gross scheduled rent on both the current and the stabilized side. These are estimates, and a buyer should run their own numbers.
For context on pricing, our 18 unit listing at 412 Union Dr. near Downtown is offered at $116,667 per unit for studios and one bedrooms on a much larger site. Small buildings in South LA trade on a different scale, and what sets this one apart is the land behind the building.
Why the lot changes the math
Most four unit buildings give you four rents and nothing else to work with. Here the building occupies the front of the parcel and leaves a large open rear yard. Ownership commissioned a concept site plan that places a new 2 story, 4 unit detached ADU of 1,880 square feet at the rear of the lot, with five foot setbacks at the sides and rear, and the existing building stays in place.
That is the whole story of this listing. Four units today, with a plan for eight. A buyer is paying a four unit price for a parcel with a submitted plan to double the unit count.
I want to be careful with the wording. The ADU plans are submitted. They are not represented as approved or permitted. A buyer should verify the plans, the permit status, and the feasibility with the City of Los Angeles before closing.
The location
The property sits on a residential block in the 90044 zip code, close to the 110 Freeway, Figueroa Street, and Gage Avenue. The 110 runs straight north to USC, Exposition Park, and Downtown Los Angeles. The block is a mix of single family homes and small apartment buildings, which is the kind of street where one bedroom units stay rented.
What a buyer gets on day one
Four occupied one bedroom units producing $3,362 per month. Separate gas and electric meters. A building that has been in service since 1953 with long term tenants in place. And a rear yard that is not doing anything yet.
The in place rents average about $840 per unit. That is well under the $1,900 estimate we are using for stabilized one bedroom rent, which is where the long term upside in the existing building comes from.
How I would approach it
If I were buying this, I would treat it as two projects. The first is the existing building: keep it full, keep it maintained, and let the income carry the property. The second is the back of the lot: pick up the submitted ADU plans, confirm with the city what is required to take them through permitting, and price the construction before removing contingencies.
I would also look hard at the price per unit both ways. At $645,000 the building is $161,250 per unit as it sits. If the ADU plan is carried through, the same purchase price is spread across eight units, before construction cost. That gap is the reason to do the work.
The buyer who wins here is the one who does the ADU homework during escrow. The plans give you a head start. They do not replace your own due diligence.
If you own a small building with an open yard behind it, this is also worth a look as a seller. I wrote a full guide on what your building is worth and how to sell it on our Seller Hub, and you can see the full listing on the 6605 Denver Ave listing page.
Questions owners ask
What does ADU plans submitted mean at 6605 Denver Ave?
It means ownership had a concept site plan prepared for a new 2 story, 4 unit detached ADU of 1,880 square feet at the rear of the lot, and the plans have been submitted. It does not mean the plans are approved or permitted. A buyer should confirm the status and the requirements with the City of Los Angeles.
How much rent upside is there at 6605 Denver Ave?
Current rents total $3,362 per month across four one bedroom units, an average of about $840 each. At an estimated $1,900 per unit the building would produce $7,600 per month, or $91,200 per year. That stabilized figure is an estimate and the timing depends on the tenancies in place, so a buyer should verify it independently.
How big is the lot at 6605 Denver Ave?
The lot is 5,402 square feet, 40 feet wide by 135 feet deep, and it is zoned LAR2. The existing four unit building sits at the front of the parcel, which leaves a large open yard at the rear where the detached ADU is planned.
Buyers are advised to independently verify the accuracy of all information, including rent control status, zoning, square footage, ADU plans, permits, and financial projections, prior to close of escrow. All property showings are by appointment only.
Written by Chandler Rockwell, Broker, The Rockwell Group, DRE 02080782
Own units in Los Angeles? Call or text Chandler at 310.405.7632 or send the address and I will tell you what it is worth as it sits today, tenants and all.
