VAN NUYS, CA-A private capitalhas purchased Terraces at the Lake, a 52-unit multifamily asset, for $9.2 million.
The property, at 16550 Vanowen St. in the Lake Balboa section of Van Nuys, attracted seven offers and sold five months after the initial listing, said Warren Berzack, president of The Berzack Group and a principal of Lee & Associates-LA North/Ventura. Berzack and Stephen Geiger, a partner in the Berzack Group and Lee principal, represented the buyer and seller, also a private capital investor, in the transaction.
“We’ve seen extremely low cap rates and expedited sales on class-A buildings for some time now, but as demand continues to outstrip supply, we are now seeing similar results in the class-B sector,” Berzack said. “Investors are increasingly moving to assets like Terraces at the Lake because it is institutional quality asset located in a desirable San Fernando Valley neighborhood in Los Angeles.”
The property, which is non-rent controlled, sold at a 5.3 percent cap rate, a level consistent with recent sales of class-A assets.
Terraces at the Lake features 28 1-bedroom, 1-bath units; 16 2-bedroom, 2-bath units and 8 2-bedroom 2-bath townhouses. It has been newly remodeled.
The transaction is one of three The Berzack Group completed in the past several weeks.
Berzack and Geiger also represented the buyer and seller in a 23-unit apartment sale at 4319 W. Olive Ave. and 4115 W Hood Ave. across the street from the Warner Bros studio lot in Burbank, CA and the team represented the buyer in a 20-unit apartment property at 14654 Rayen St. in Panorama City, CA.
The 4319 W. Olive/4115 W Hood property, which will be renovated, sold for $50,000 above listing price. Combined consideration for both properties was $5,575,000.
Han Chen, an associate of Lee & Associates-Services Group, represented the seller in the off-market sale of 14654 Rayen St.
Both properties were fully occupied at the time of sale.