5821 Hazeltine Ave, Van Nuys

The LAAA Team of Marcus & Millichap is pleased to announce the successful closing of this 4 unit property located at 5821 Hazeltine Ave in Van Nuys, CA, ideally situated South of Oxnard Street, and just two blocks north of the Sherman Oaks city border at Burbank Blvd.

Record Sale

According to the MLS' sales data, this 4 unit property has become the second highest price/sqft ever achieved for a 4 unit building in Van Nuys, 91401. The only 4 unit property to beat this sales' price/sqft is a brand new construction building that sold in 2021. See below for the top 10 list.

Property Overview

This offering sits on a 0.14 acre lot, it has an alleyway behind the property for easy access to the property's gated parking, and it comes with 3 units that are not subject to LA City Rent Control (only subject to AB-1482). The offering is comprised of a stand alone, 800 square foot, 2 bedroom house in front, which was built in 1928 and subject to LA rent control, and a triplex at the back of the lot which was built in December 1978 and is comprised of (2) 1 bed units and (1) bachelor. Since this triplex in back was built after the cutoff for LA Rent Control, those three apartment units are not subject to LA's strict rent control laws, and they are only subject to the more lenient AB-1482 rent control laws which allows annual rent increases equal to 5% + CPI. Also, the front 2-bed house was fully renovated in 2015 with all new electrical, plumbing, floors, kitchen, bathroom, etc.

Deal Story

We listed this property in early May 2022 when the market was still offering all time low interest rates. Our list price of $1,225,000 was higher than our recommended list price of $1,175,000, but we were willing to bump our list price for our client by $50,000 due to the fact that the triplex at the back of the lot was not subject to Los Angeles' Rent Control (RSO). Since it was built in December 1978, barely escaping the October 1, 1978 cutoff for rent controlled status, we believed we could add a premium to the list price. We ended up being correct with that thinking, but the timing of the listing ultimately brought the sale price down to just about our original opinion of value.

After two and a half weeks of marketing, we were having issues receiving offers higher than $1,100,000 due to the rising interest rates, especially because 4-unit properties have been hurt the most in terms of interest rates. Since 4 unit properties are not big enough to receive commercial financing...