8 Units | Canoga Park | 14 Offers Generated
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The successful closing of this 8 unit multifamily property located at 6902 Milwood Avenue, Canoga Park, CA.
Property Description
This rent controlled property was built in 1964 and sits on a 0.15 acre corner lot, and is on a quiet street that's directly adjacent to the Los Angeles River. The 5,438 building square feet is divided into eight units with a mix of (1) Studio, (6) 1 bed / 1 bath units, and (1) 2 bed / 1 bath unit. Current rents are approximately 42% below full market potential.
Deal Story
Although we received many offers, we soon confirmed that our initial asking price was too high. We ultimately accepted an all-cash offer from an exchange buyer in November 2023, but during the inspection, we discovered that the property had a Zinsco electrical panel which is very outdated and considered a fire hazard, making this property nearly uninsurable. This contributed to the buyer's decision to cancel our escrow and buy a different deal with his exchange money.
Towards the end of the year, we suggested to the seller to give rent increases and capital improvement increases to the tenants, which they were unable to do previously due to COVID restrictions. This helped us raise the cap rate and generate more offers in the early months of 2024.
After a total of 14 offers, we found the right buyer who had a large local portfolio of apartments and was willing to take on this project, leading to our successful close last week.
For more information on this sale, or to receive a complimentary pricing and/or 1031 exchange analysis on your property, please give us a call today! (818) 212-2808
Closing
