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4/24/23
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In a recent multifamily comp out of the San Fernando Valley, a 13-unit property located at 13440 Victory Blvd in Van Nuys sold for $3 mil, or $231k/unit. At the time of closing, five units were vacant and in various stages of renovation.
Rick Raymundo of Marcus & Millichap represented both the seller and the buyer. “The transaction originally went under contract in October 2022, and we helped negotiate escrow extensions to accommodate the seller’s 1031 exchange,” explained Raymundo. “However, this longer escrow period meant that the transaction had to withstand a good amount of market turbulence through the end of 2022 and beginning of 2023. In the end, the buyer still moved forward with the purchase and can now begin the seismic retrofit and interior renovations.”
Based on rents in place at the time of sale, the transaction closed at a 1.56% cap rate and 22.95 GRM. According to Raymundo, once renovations are completed on the five vacant units and rents are stabilized, the anticipated cap rate could potentially reach 5.85%
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