6228 Fulton Ave, Van Nuys

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6220 Fulton Ave

Van Nuys, CA 91401

Overview

The LAAA Team of Marcus & Millichap is proud to announce the successful sale of 6220 Fulton Ave, a 30-unit apartment building located in Van Nuys, CA.

Deal Story

This was a tough one, no doubt. We originally listed the property in March 2024 and received four offers within the first few weeks. We opened escrow in April, but that buyer canceled quickly, before even inspecting the property. That first buyer backed out due to the looming threat of Prop 33, and the potential for it to significantly hurt apartment values if passed. The specter of Prop 33 was a constant concern throughout 2024 on all our deals—very happy that's been squashed!

We went back to market with a modest price reduction and, once again, received a ton of interest. By July, we had six new offers from qualified buyers. We opened escrow for a second time with an experienced local investor, but that escrow failed as well. That buyer did go through a three-week due diligence period, meticulously analyzing every detail of the property. When it came time for contingency removal, the buyer demanded a huge price reduction to move forward. The seller tried to meet them in the middle, but the buyer wouldn't budge, so we canceled escrow. This became another common trend of 2024: buyers were much pickier and less willing to negotiate than in the previous years. It was a year filled with uncertainty—uncertainty about where interest rates would go, uncertainty around Prop 33 and how rent control laws might change, and uncertainty about who would be sitting in the Oval Office—an understandably concerning time to be a buyer.

We opened our third, and final, escrow in late August with a client of ours who had been circling the deal for months. This buyer needed four months to close because the cash for his down payment was tied up in a Certificate of Deposit (CD) set to mature in early December. To avoid an early withdrawal penalty, he needed to close in mid-December. The sellers weren't thrilled about a four-month escrow without the buyer having significant skin in the game, so we negotiated a contract with a standard 60-day...