24966 Walnut St, Santa Clarita

The LAAA Team of Marcus & Millichap is proud to announce the successful closing of 24966 Walnut Street, a 9-unit apartment building in the heart of Santa Clarita. This marks our first year-end investment property sale specifically structured to leverage the 100% bonus depreciation law enacted on July 4, 2025.

Our marketing campaign generated multiple offers within days of launch, and the property was acquired by a local, high-income, all-cash buyer just 43 days after listing.

Seller Motivation

After nearly four decades of ownership, the sellers decided it was time to simplify their lives and transition out of active management. Our two-year relationship with the seller—built on education, timing strategies, and property preparation—positioned the asset for a competitive process and smooth closing.

Buyer Motivation - 100% Bonus Depreciation

The buyer was motivated by the ability to capture 100% bonus depreciation as a powerful tax shield against 2025 income. While the property carries deferred maintenance—including roof replacement, electrical upgrades, termite and wood repair, and moisture remediation—these challenges provide a clear value-add pathway. Several tenants have occupied their units for more than 25 years, resulting in below-market rents and significant income growth potential as units turn. The property is also subject to SB-721 balcony inspections by January 2026, adding near-term capital requirements alongside long-term upside.

Market Info

Santa Clarita is one of the tightest apartment markets in Los Angeles County, defined by limited multifamily inventory and high barriers to entry. Apartment trades are rare, and when properties do hit the market, they attract strong competition due to scarcity. Walnut Street stood out as a rare offering in a submarket where long-term ownership is the norm and new construction is limited.

Optimism for Q4

This deal highlights our ability to create competitive demand, overcome challenges, and deliver successful outcomes for our clients. Apartment demand is expected to accelerate before year-end as investors move quickly to capture this unprecedented tax benefit. If you are considering a sale or acquisition, contact us to discuss how today’s unique market conditions may impact your investment strategy.