Burbank | 5 Units | Record Breaking Sale
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The LAAA Team of Marcus & Millichap is pleased to announce the successful sale of this 5 unit multifamily property located at 157 West Ash Avenue in Burbank, CA 91502.
Record Sale
This 5 unit multifamily building has solidified its place in CoStar's the all-time sale record books for a 5+ unit multifamily property sale in Burbank's 91502 Zip Code.
157 W Ash Avenue is now the #1 highest price per square foot ever achieved, and the #3 highest price per unit ever achieved in 91502. These rankings come from CoStar which shows a total of 101 multifamily sales in 91502 since 1989, which is the furthest their records go back.
Property Overview
This property, built in 1988, is not subject to any local rent control laws. It is only restricted by California's AB-1482, which limits annual rent increases to 5% + CPI. This 4,564 square foot building sits on a 6,274 square foot lot (0.14 acres), and it boasts an excellent unit mix of (2) 1 Bed / 1 Bath units and (3) 2 Bed / 1.5 Bath units. 3 of the 5 units have been fully renovated in the past few years, and the buyer will still be able to achieve an estimated 20% upside in rents without the worry of much deferred maintenance.
Deal Story
We listed this property in February for $2,200,000, and we started our marketing on February 16th when we sent out our first "just listed" email announcement to 20,000 principals and brokers. Within 7 days, we were able to generate three strong offers from qualified buyers, two of which were at or above our list price. The seller gave a multiple, non-binding counter offer to all three buyers with the same price and terms, giving each buyer the same chance to win the deal. The price on the counter was $2,210,000 ($10k above list) with a 3% escrow deposit ($66,300), and the terms included a 7 day contingency period, no loan or finance contingency, a 60 day close of escrow, and one option for the seller to extend escrow by 30 days in case the seller needed extra time to find their 1031 exchange property.
The winning buyer, who was a local doctor based out of Burbank, accepted the seller's price and all of the seller's terms. This was the buyer's first apartment building that he's bought before. His motivation to buy was to diversify his investment portfolio with a safe, local apartment building that would be relatively easy to manage, and this well kept 5-unit property fit that description perfectly for him. Since this...
