The LAAA Team of Marcus & Millichap is proud to present this brand new building located at 14019 Vanowen Street in Van Nuys, California. The property sits on 7,009 square feet of land with 7,841 square feet of building area and consists of all townhouse style units with the following unit mix: (1) - 2 bed / 2.5 bath, (1) - 3 bed / 3 bath, (1) -3 bed / 3.5 bath, (1) - 4 bed / 3 bath, and (1)- 4 bed / 3.5 bath units, with the smallest unit being 1,120 sf, largest being 2,027, and an average square footage of 1,621 ft. Furthermore, each unit gets their own private garage parking.

The Seller received his Certificate of Occupancy earlier this year and recently completed the lease up all of the units. This building is now 100% occupied. In order to lease up the building quicker, the Seller rented these out slightly below market rents, therefore we are projecting an additional 7.2% upside in rents for the Buyer. Since this building is brand new, and it does not fall under AB 1482 regulations, there are absolutely no rent control restrictions on this property. Therefore, the Buyer will be able to increase all of the tenants rents after their leases are done in mid-2021 in order to get rents to market rate, adding nearly $15,000 more per year in gross rent in 2021.

Because this property is fully leased up and cash flowing very well, a Buyer will be able to take advantage of today's historically low interest rates with a high, 70% LTV loan. Our MMCC loan broker has given us the following loan quote for a qualified borrower/buyer:

30% Down Payment ($807,000)
70% Loan ($1,883,000)
3.50% Interest Rate, Fixed for 5 Years
Option to receive 2 or 3 years of Interest Only

With the Interest only payments, the Buyer's Cash-on-Cash return on their $807,000 down payment would be an estimated 8.65%!

This investment opportunity is ideal for the investor who is seeking a high cash flow, very low management, brand new construction multifamily property, in the very strong rental market of Van Nuys.