Executive Summary

DOWNLOAD OFFERING MEMORANDUM

The Neema Group of Marcus & Millichap is pleased to present 7851 Ventura Canyon Ave, a rare, stabilized investment opportunity of a 51-unit apartment building in Panorama City. Located just south of Kaiser Permanente, next to the Roscoe Blvd and Ventura Canyon Ave intersection with close proximity to the 170 Freeway. The subject property is ideal for residents who work at Kaiser Permanente as the 0.4-mile distance is less than a 10-minute walk. 

The building features an ideal, rare unit mix of spacious units made up of 36 two-bedrooms (1,080 SF) and 15 three-bedrooms (1,480 SF). 7851 Ventura Canyon Ave is an extremely well-maintained property with no deferred maintenance. Units feature in unit washer and dryer, air-conditioning, high-speed internet access, luxury vinyl plank flooring, quartz countertops, recessed lighting, and walk in closets. Utilities are individually metered, including water. The property features a spacious outdoor courtyard filled with greenery, seating, and BBQs, a fitness center fully equipped with free weights, machines, and treadmills, a gated entrance, and security cameras all around. The property also features 116 secured covered parking spaces.

Strong in-place rental income provides stable current cash flow of 4.07% on current income to an investor with additional long-term upside in rents. The 2014 construction does not fall within the city of Los Angeles rent control. The neighborhood of Panorama City is a desirable rental market of Los Angeles, surrounded by plenty of restaurants, highly rated schools, parks, and amenities. 

Investor has the opportunity to secure new long-term financing at 2.95%, possibly interest only for 10 years at a 70% LTV. After debt service an investor could potentially obtain a 6.7% cash-on-cash return and utilize depreciation and cost segregation to further shelter income. 

Area Overview

PANORAMA CITY

Panorama City is a neighborhood in Los Angeles, California with a population of 72,243. Panorama City is in Los Angeles County. Living in Panorama City offers residents an urban feel and most residents rent their homes. In Panorama City there are a lot of coffee shops and parks.

Located in the center of the San Fernando Valley, Panorama City considers itself the heart of the Valley. Van Nuys Boulevard, lined with stores and malls, serves as the main thoroughfare of Panorama City. Single-family homes fill the neighborhood east of the boulevard, while the western portion largely contains apartments. 

It has a generally young age range as well as the highest population density in the Valley. Residents enjoy easy access throughout the Valley, living within three miles of the San Diego, Golden State, Simi Valley, and Hollywood Freeways. Panorama City sits 19 miles northwest of Downtown Los Angeles and 6 miles west of the Burbank Airport.

The population of Panorama City is 72,243 with 49% males and 51% females, and a median age of 33.38% of this neighborhood is occupied by families with children, 28% single-female families, 16% single-male families, and 56% couples. The average household size in Panorama City is 3.66, and the average family size is 3.98.

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