16647 Victory Blvd, Van Nuys

and Project Summary

The LAAA Team and Matt Ziegler of Marcus & Millichap are proud to announce the successful sale of 16647 Victory Boulevard, a development site to build 4 units in Van Nuys, CA.

Deal Story

We co-listed this deal in mid-April 2023 with our Marcus & Millichap colleague, Matt Ziegler. Within less than 30 days on the market, we secured an offer from a client of an outside broker, who offered the full list price. The seller countered some of the offer terms but ultimately agreed to the price. We opened escrow a few days later at $1,075,000, with a 5-day due diligence period and a 45-day closing timeline. The buyer removed contingencies without requesting any credit or price reductions, which allowed us to proceed towards closing.

However, as we approached the closing date, our plans were delayed due to the City's slow approval process. We had expected to receive full RTI (Ready to Issue) approval by the end of May, but due to the City's inefficiencies, the approval was delayed for at least another month. In response, we decided to push our closing date back to the end of June, but even with the extended timeline, it proved insufficient. The City's refusal to cooperate created uncertainty about when we would receive full RTI approval. It could be a matter of days, weeks, or even months.

In light of this situation, we worked out a solution with the buyer and seller to facilitate the closing of escrow. The seller committed to delivering the promised plans to RTI, and as a precaution, we negotiated a small hold-back of the seller's proceeds. These funds will remain in escrow until the seller provides the final approved RTI plans to the buyer. Once this occurs, Escrow will release the held-back funds to the seller, ensuring that all parties are satisfied and the transaction is completed.

Project Summary

The project is well-designed and consists of (4) 3 Bed / 2 Bath units. Unlike similar projects, the design also includes an office and recreation room, which will enhance the tenant experience and generate higher rents. The building design is for 2 stories residential with the parking garage on the first floor. Plans call for 3 units on the top floor and 1 unit plus rec room and office on the bottom floor. The project also provides 4 standard, 1 compact and 1 disabled car parking spots as well as 6 bicycle parking spaces.

Closing