16935 Vanowen Street is a fully occupied retail strip center located between Balboa Blvd and Amestoy Ave in the Lake Balboa neighborhood of Van Nuys. This is a central location providing easy access to education, restaurants, shops, outdoor recreation, Van Nuys Airport, and I-405.
Built in 1984, the subject property consists of 16,374 SF occupied by 12 long-time tenants with the majority on NNN leases. Tenants have rent increases throughout the lease term and option periods to hedge against inflation. The building is suitable for a wide variety of uses with spaces ranging from 800-3,508 SF. There is also a total of 36 parking spaces.
There is a steady in-place cash flow with a current CAP rate of 4.83% with an additional rental upside of over 34%. Multiple tenants currently have short term leases at below market rents, offering an investor the opportunity to capture the upside efficiently. The property is being offered at $321 price per square foot.
There is also strong future development potential with a large 26,552 SF lot zoned C2-1VL; with the ability to build up to 66 units-by-right and up to 91 units with an affordable component by utilizing the California density increase.
The property is centrally located in Lake Balboa and is very walkable with a walkscore of 79. It is located directly across the street from Mulholland Middle School, Valley Alternative School, Daniel Pearl Magnet High School, and two miles from Van Nuys Airport. The location boasts numerous national tenants nearby including Del Taco, McDonald’s, Subway, GameStop, Jack in the Box, 7-Eleven, Arco, Sizzler, and In-N-Out. Lake Balboa/Anthony C Beilenson Park is located a half mile south, complete with the lake, golf courses, bike rentals, sports complex, Japanese garden, and wildlife reserve.