Description

14161-14163 Delano Street, Van Nuys, CA 91401 

Price: $5,600,000
Units: 18
Year Built: 2014 / 1963
Building Size: 15,352 SF
Lot Size: 14,912 
Price per Unit: $311,111
Price per SF: $365   

Current Cap Rate: 4.57%
Current GRM: 14.07   

Market Cap Rate: 5.31%
Market GRM: 12.63

Stepp Commercial is pleased to present an exciting opportunity to own Delano Village, an 18-unit apartment community two blocks from the Van Nuys Civic Center. Delano Village consists of a ten-unit asset built in 2014 and an adjacent eight-unit asset built in 1963 and is being offered together as a collection.

TURNKEY BUILDING IN THE VALLEY

Seventeen of the eighteen units are either newly constructed or have been recently renovated, presenting a turnkey stabilized asset with no deferred maintenance and immediate cash flow. Due to a passive management approach in-place rents are approximately ±13% under market, providing the ability to increase rents either as units organically vacate, or immediately given the newer building’s non-rent control status.

UPDATES AND RENOVATIONS

The newer building is comprised of (10) two-bedroom, one and one-half bath townhouse style units, and the older building is comprised of (7) two-bedroom one-bath units, and (1) one-bedroom unit.

Building and unit upgrades include hardwood style flooring, stone countertops, stainless steel appliances, onsite laundry, and the newer building also contains central A/C and heating , nest thermostats, and tankless water heaters. Both buildings are amply parked with 18 covered spaces. The older building will be delivered with the seismic retrofit work completed.

VAN NUYS RENTAL MARKET

Vacancy rates in the Van Nuys submarket are at 3.1%, which are some of the lowest in Los Angeles. The Civic Center and its ancillary industries that feed into the area offer a built-in supply of jobs within walking distance or a short drive from the property.

Van Nuys has seen a 25% jump in rents since 2014 and nearly a 4% year-over-year increase from 2018 to 2019. This increase is largely due to a spillover affect given its proximity to more affluent and emerging submarkets such as Sherman Oaks, Studio City and North Hollywood. Despite these increases, Van Nuys is still considered an affordable place to live – for now.

GROWING ECONOMIC ENVIRONMENT

With its large base of over 75% renters, Van Nuys has seen an influx many new development projects including 351 units that have been delivered since 2018, and an additional 576 units that are either under construction or in the planning phases.

Metro recently announced plans to extend light rail service into the submarket, with a line running from the Van Nuys Orange Line Station, which is just three blocks from Delano Village, north to the Sylmar/San Fernando Metrolink station. The enhanced connectivity to the city’s rapidly growing public transportation system will continue to attract development in Van Nuys.