Two SoCal private inves1Drs traded a 13.3k sf, multi-tenant retail center In Van Nuys for $4.9 mil ($368/sf). The property is sitl.iated on .54 acres at 13647 Victory Slvd, at the Intersection with Woodman Ave.
The building, which was built in 1986 and has 11 suites, Is currently occupied by tenants such as Ace Cash Express and Utlle Caiesars. The property was 90% occupied at the time of sale.
Both the buyer and the seller were represented by Hanley Investment Group Real Estate Advisors’ Jonathan T. Selznick, who tells us that the sale represents a record cap rate for a reta ii transaction in the city of Van Nuys In over five years.
According to Selznick, “This speaks to both the increased demand for multi-tenant product and to the fact that investors will pay premium prices for well-located, core Southern California locations.” “I believe there are some more passive/conservative investors who would ordinarily be candidates for single-tenant NNN lease Investments who are now willing to accept the increased management responsibilities that come with a multi-tenant investment but are not willing txJ buy that 4% cap single-tenant deal that we’ve been seeing so frequently In the market and achieve a slightly higher return for doing so,” added Selznick.