92-Unit Portfolio Arrives on the Multifamily Supply-Constrained San Fernando Valley Market
A family office located in Los Angeles’ San Fernando Valley submarket has begun its strategic disposition of multiple multifamily holdings by putting the 92-unit Valley Gateway Collection on the sales block.
The listed sales price for the portfolio is $24.3 million with a going-in cap rate of 5.8%. However, Newmark’s Vice Chairman Dean Zander told ApartmentBuildings.com that the properties are also available individually or as a sub-portfolio. “The properties have all been well-maintained but would absolutely benefit from a thoughtful value-add program addressing the common areas and unit interiors,” said Zander, who leads the team that is representing the seller.
The three-property portfolio was built between 1971 and 1986 and includes:
- The 30-unit Woodpark, 4424 Woodman Ave., Sherman Oaks (South San Fernando Valley)
- The 34-unit Woodman Apartments, 7506-7507 Woodman Ave., Van Nuys (Central San Fernando Valley)
- The 28-unit Haskell Village, 6825 Haskell Ave., Van Nuys (Central San Fernando Valley)
The layouts consist of studios and one- and two-bedroom units, and have a combined occupancy of 97%. Current rents range from $2,009 to $2,280 per month.
While roofs have been replaced on two of the properties, the assets offer additional upside through unit renovations. “There is significant room to grow rents through operational improvements and upgrades,” Zander said. Furthermore, the Van Nuys properties are not subject to rent control.
Sherman Oaks and Van Nuys enjoy strong fundamentals (including job and population growth), but are supply-constrained when it comes to apartments. Both neighborhoods contain mostly single-family dwellings. Additionally, concerns abound about high-density housing development.
Zander said that the seller is disposing of a portion of its portfolio and plans to acquire newer properties. As such, investors who purchase all or part of the Valley Gateway Collection will also have the first crack at buying additional neighborhood assets through off-market deals. “This will help provide immediate scale, which provides cost benefits and efficiencies,” he observed.
Zander said his team is considering and responding to offers as they come in. “We’ve fielded 100 or so inquiries and have conducted a dozen tours so far,” he added. “No bid deadline date has yet been announced.”
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Brokers
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Remax Professionals
Re/Max Real Estate Professionals | New York
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Jared Ennis
Central CA Commercial | California
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Rick Recckio
Recckio Real Estate & Development
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Eamonn McConnell
Avison Young - CA - ON - Greater Toronto
Lenders
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Essex Property Trust, Inc.
California
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Josh A
California
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Bob Tuteur
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Andrew Schildcrout