Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5.1 million sale of Delano Village, an 18-unit apartment property located at 14161 to 14163 Delano Street in Van Nuys, CA.
Senior Vice President Mark Ventre and Executive Vice President Darin Beebower of Stepp Commercial represented the seller, a developer, as well as the buyer, a private investor. The asset sold for a per-unit price of just over $283,000; a price per square foot of $332; and a cap rate of 4.92 percent.
“Delano Village offered the new ownership immediate cash flow, no deferred maintenance, upside in rents, and completed seismic retrofit upgrades,” said Ventre. “Additionally, our team was able to work with the buyer to ensure favorable long-term financing on the property.”
Beebower added, “An influx of high-income renters is continuing to migrate to the Van Nuys submarket. This area provides them with convenient access to employment centers, and is a more affordable alternative to the surrounding submarkets of Sherman Oaks, Studio City and North Hollywood.”
The two-building property totals 15,352 square feet and includes 17 two-bedroom units and one one-bedroom unit. One building was built in 2014 and features 10 townhouse style floorplans. The second building was built in 1963 with seven of the eight units recently renovated. The townhome and updated units include hardwood style flooring, stone countertops, stainless steel appliances, and onsite laundry, among other upgrades. The well-located property is two blocks from the Van Nuys Civic Center and provides nearby access to the 405 Freeway and the Metro Orange Line.
The residential vacancy rate in the Van Nuys submarket is at approximately 3.1 percent, which is one of the lowest in the greater Los Angeles region. Van Nuys has seen a 25 percent jump in rents since 2014 and nearly a 4 percent year-over-year increase from 2018 to 2019. This increase is largely due to a spillover affect given its proximity to pricier submarkets.
