4077-4083 Tujunga Ave, Studio City

The LAAA Team of Marcus & Millichap is proud to announce the successful sale of 4077-4083 Tujunga Avenue located in Studio City, California.

RECORD SALE STATS

Per CoStar, this sale has cemented itself into the all-time sale record books for 5+ unit multifamily sales in the city of Studio City. CoStar now has this listed as the #1 highest price per unit ever for a multifamily property built before the year 2005. Additionally, it is the #3 highest price per square foot ever in Studio City, for any building built in all years, even including brand new construction buildings.

*note: Costar's two highest price/sqft sale records are for properties that sold for land value and have since been redeveloped, and therefore those two sales' stats were not included in our claims above.

PROPERTY INFORMATION

This 14,342 sqft property, built in 1990, is not subject to LA's strict rent control laws (only AB-1482), and it included (2) identical / mirror 8-unit buildings on two separate APNs. This is unique because the owner does not need to have an onsite manager, which is required by law for a 16-unit property, because it is two separate 8-unit buildings. Furthermore, the property presents a great unit mix with (8) 1 Bed / 1 Bath units and (8) 2 Bed / 2 Bath Units, with the average unit size being approx. 900sqft.

The seller has renovated 12 of the 16 units already, leaving 4 unrenovated units for the buyer to remodel over time. Also, at the time of sale, the property was delivered with 2 units vacant, both unrenovated, and the buyer plans on renovating those two units right away and renting them out at top market rents.

DEAL STORY

In late July 2021, the seller of this property reached out to our team to provide him with an opinion of value to see if he would like to list the property for sale with us. At that time, our suggested list price was $7.9M for these 16 units in prime Studio City, with an expected sales range down to as low as $7.6M. At $7.9M, we believed it was an ideal list price because it was aggressive, but not too aggressive that we would not receive interest in today's strong market. To be honest, we did not believe that selling this property at $7.9M or higher was realistic, but with the great market conditions we find ourselves in, we couldn't count that out completely.

The following week, after we presented our pricing analysis to the seller, and before the seller made a decision on whether or not to list it with us, we received a call from...