| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 82nd | Best |
| Demographics | 69th | Good |
| Amenities | 75th | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 5501 Newcastle Ave, Encino, CA, 91316, US |
| Region / Metro | Encino |
| Year of Construction | 2010 |
| Units | 120 |
| Transaction Date | 2015-01-30 |
| Transaction Price | $44,000,000 |
| Buyer | Venture Capital West, L.P |
| Seller | --- |
5501 Newcastle Ave, Encino CA Multifamily Investment
Positioned in an Urban Core pocket of Encino with strong renter demand and steady neighborhood occupancy, this 120‑unit asset benefits from newer-vintage competitiveness and proximity to major employment nodes, according to WDSuite’s CRE market data.
Encino’s Urban Core setting supports renter demand with a broad amenity base: high concentrations of groceries and pharmacies (both in the mid‑90s national percentiles) and a solid mix of restaurants and cafes (80s national percentiles). While immediate park access is limited, the day‑to‑day retail and service mix helps sustain convenience for residents. Average school ratings sit modestly above the national midpoint, which can aid family retention without being a primary differentiator.
The neighborhood rates A overall and ranks 193 out of 1,441 Los Angeles metro neighborhoods, placing it among the more competitive locations in the region. Neighborhood occupancy is strong and above national norms, and local NOI per unit trends are also high relative to national peers. Median contract rents in the area have grown over the last five years, with current levels positioned in the upper national percentiles for comparable neighborhoods.
Construction vintage skews older across nearby stock (average 1973), so a 2010 build stands newer than much of the competitive set. This typically translates into stronger leasing velocity and reduced near‑term capital exposure relative to older assets, while still allowing targeted upgrades for repositioning as systems age over the hold period.
Renter concentration is elevated at the neighborhood level (about six in ten housing units are renter‑occupied), indicating a deep tenant base that supports leasing stability. Within a 3‑mile radius, households have increased even as total population edged lower, implying smaller household sizes and a broader addressable renter pool. Forecasts indicate further household growth with rising incomes and higher asking rents, supporting long‑term demand. In a high‑cost ownership market (value‑to‑income ratios in very high national percentiles), multifamily remains a more accessible housing option, which can bolster retention and pricing power for well‑positioned properties.
Safety indicators trend favorable in a national context: the neighborhood sits in the top quartile nationally for lower crime, while metro positioning is better than many Los Angeles peers with a rank of 345 out of 1,441 neighborhoods. Recent momentum is constructive, with one‑year declines estimated for both violent and property offenses, according to WDSuite’s CRE market data.
As always, conditions vary by block and over time. For underwriting, consider standard measures such as access control, lighting, and resident engagement to maintain stability in line with broader neighborhood trends.
Nearby corporate offices span life sciences, insurance, and energy to media and engineering, supporting a diversified employment base and commute‑friendly renter demand. The list below reflects the closest major employers serving this corridor.
- Thermo Fisher Scientific — life sciences (4.0 miles)
- Farmers Insurance Exchange — insurance (4.6 miles) — HQ
- Occidental Petroleum — energy (9.0 miles) — HQ
- Live Nation Entertainment — media & entertainment (9.8 miles) — HQ
- AECOM — engineering & professional services (9.9 miles) — HQ
This 2010‑vintage, 120‑unit property stands newer than much of the surrounding stock, offering competitive positioning versus older assets and the ability to target selective value‑add over time. Neighborhood fundamentals show strong occupancy and high renter concentration, with household growth within a 3‑mile radius expanding the tenant base even as average household size trends lower. In a high‑cost ownership market, elevated home values tend to sustain reliance on rental housing, supporting lease retention and pricing discipline.
According to CRE market data from WDSuite, area rents and NOI per unit sit in higher national percentiles, and proximity to diverse employment clusters underpins demand. Affordability pressures should be monitored via rent‑to‑income dynamics, but the combination of location convenience, amenity depth, and newer construction creates a durable foundation for long‑term performance.
- Newer 2010 construction versus a 1970s‑heavy competitive set helps leasing and moderates near‑term capex.
- Strong neighborhood occupancy and elevated renter concentration support demand stability and retention.
- Amenity‑rich Urban Core location with robust groceries, pharmacies, and dining options aids daily convenience.
- Diverse nearby employers across life sciences, insurance, energy, entertainment, and engineering bolster the renter pool.
- Risks: manage rent‑to‑income affordability and limited immediate park access; maintain standard safety and asset‑management practices.