5905 Whitnall Hwy

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.