4838-4846 Hazeltine Ave, Sherman Oaks

the successful sale of 4838-4846 Hazeltine Ave in Sherman Oaks, California.

Record Sale in Sherman Oaks

This sale has cemented itself into the record books as the 3rd highest price per unit ever achieved for a Los Angeles rent controlled apartment building (built before October 1978) in Sherman Oaks. See below for a list of the top 5 price per unit sales ever achieved:

Property Overview

This unique offering is made up of two separate and identical 8-unit buildings with a shared courtyard in between. Due to this fact, the buyer of this property will be able to save on management costs since they will not need be required hire an onsite manager that would normally be required on a 16+ unit building. In total, these two buildings sit on a combined lot size of 0.36 acres with a total building size of 14,136 square feet, and it boasts an excellent unit mix of (8) 1 Bed / 1 Bath units, (4) 2 Bed / 1 Bath units, and (4) 3 Bed / 2 Bath units. The property offers its tenants security with a gated entrance and surveillance systems. Also, the tenants have convenient access to parking behind the building through an alley way where there are a total of 16 parking spots (1 for each unit). Furthermore, the property has a full laundry room, and the machines are owned by the sellers.

Deal Story

We sold this property back in 2015 to our clients that just sold this building now. Back in December 2015, our clients bought this 16 unit property for $4,900,000. In their 6.5 years of ownership, they spent approximately $400,000 on renovating most of the exterior and interiors of the property, meaning their total investment was about $5,300,000. With this sales price of $6,100,000, our clients were able to clear more than $500,000 of profit after closings costs. Instead of cashing out, our savvy clients are exchanging the sale proceeds into a brand new 15-year leased triple-net Walgreens in Texas, and the lease is guaranteed by Walgreens corporation. With this exchange, the sellers are going to increase their net cash flow and get rid of all management responsibilities.

The buyer of this property is a prominent, local real estate owner and developer. He recently sold an office building and used the proceeds of that sale to buy this mostly stabilized, well-located apartment building. Because the buyer has bought, sold, and developed a lot of buildings before, he was able to give the Seller a very clean offer after only one quick tour of the buildings. His offer had a very...