5905 Whitnall Hwy, Los Angeles

the successful sale of this 7-unit multifamily property located at 5905 Whitnall Hwy in North Hollywood.

This 5,008 SqFt rent controlled apartment building sits on a 4,905 SqFt lot, was built in 1961, and it has a unit mix of (4) 1-Bed / 1-Bath units, (2) 2-Bed / 1-Bath units, and (1) 2-bed / 2-bath unit.

The property is currently bringing in low rents; however, this was a great value-add opportunity to buy a multifamily property under $200,000 per unit with the chance to capitalize on over 50% upside potential in rental income. When this property has all units paying market rents, the buyer will achieve a near 7% CAP rate.

Deal Story

With our unmatched database of apartment buyers throughout Los Angeles, we were able to generate multiple offers on this listing and quickly found the right buyer to open escrow with. After the buyer inspected the property and reviewed all of the due diligence documents, the buyer discovered that the property had upwards of $100,000 of deferred maintenance, which almost killed the deal. Luckily, we have negotiated hundreds of similar sales where the property being sold had deferred maintenance, and through this experience we were able to negotiate a fair and equitable amendment to the contract where the buyer would receive a small credit to help pay for a portion of the deferred maintenance, and in exchange for the seller's credit, the buyer removed all contingencies, making the buyer's escrow deposit nonrefundable. From that point forward, the deal moved on smoothly up to our successful close this week.

This closing further demonstrates our extremely strong market share and multifamily sale expertise in the San Fernando Valley. Year to date, we have closed 9 deals in the San Fernando Valley alone, which combine for $37.4M in volume and a total of 119 units sold this year. Furthermore, we currently have another 6 deals listed or in escrow in the San Fernando Valley, and this current activity adds up to over $40M in volume and 125 apartment units. In our total career, we have closed nearly 150 deals in the San Fernando Valley which add up to over 1,800 apartment units sold with a combined sales volume of over $450,000,000. If you are looking to sell or buy an apartment building in the San Fernando Valley, you cannot find a more active team than us.

To learn more about this transaction, talk about our current and upcoming listings, or receive complimentary pricing and/or 1031 exchange analysis on your property, please...