Investment Overview

Marcus & Millichap is pleased to announce the opportunity to purchase 6956 Kester Avenue, a 23-unit multifamily property situated on a large corner lot within Van Nuys, CA. The majority of the apartments are two bedroom units, as the spacious floorplans total approximately 20,880 square feet across the 23 units. The owner has installed full copper plumbing, while most interiors have been upgraded with granite countertops and tile flooring. A new investor may be able to add significant value to the asset by recapturing the approximately 29% rent upside. There is an attractive loan that may be assumed, fixed at a 3.75% interest rate until the year 2030. Van Nuys, and in particular the 91405 zip code, has seen a massive influx of capital in recent years and the trend could continue with several notable developments on the near horizon. Large mixed-use projects currently moving through the development pipeline include 174 units over retail at 6569 Van Nuys Boulevard, 214 units over retail at 7115 Van Nuys Boulevard, and 322 units over retail at 7050 Van Nuys Boulevard, as well as a 405-unit apartment complex at 6728 Sepulveda Boulevard. Each of these new developments is within one mile of 6956 Kester Avenue, demonstrating the optimism large investors see in the local neighborhood. Perhaps the most noteworthy development project in the area is the upcoming East San Fernando Valley Light Rail Line, which will connect the Metro Orange Line, the Metrolink Train Line in Van Nuys, and the Metrolink Train Line in Sylmar/San Fernando. The majority of the new transit line will run along the median of Van Nuys Boulevard, with two different stations planned less than one mile from 6956 Kester Avenue. In addition to boosting commerce in the immediate area, it will also provide the benefit of more convenient transportation for the property’s tenants.