Two large multifamily assets in San Fernando Valley were sold recently.

In one sale, Universe Holdings Development purchased Park Encino, a 52-unit apartment complex in Encino, for $28 million.

The Marcus & Millichap Institutional Property Advisors team of Kevin Green, Joseph Grabiec and Gregory Harris represented the unnamed seller and procured the buyer for the $538,462 per unit sale. IPA’s Brian Eisendrath, Cameron Chalfant and Patrick Barker arranged the acquisition financing for the asset.

Green, IPA’s executive managing director of investments, noted in a statement that the size of the sale was unique for the area.

“Despite favorable demographics, strong submarket fundamentals and increased demand for housing, no institutional-sized multifamily projects of 50-plus units have been delivered in Encino since 2016,” Green said. “This transaction represents the first core-plus, 50-plus unit multifamily sale in Encino since 2017.”

Grabiec added that multifamily occupancy in the area is more than 97%, while median single-family home values in the neighborhood rose by more than 75% in the last 10 years.

Built in 2014, the Park Encino is within walking distance of Ventura Boulevard and near a number of major employment centers. It has a central courtyard, clubhouse, fitness center, patio and barbecue area.

Van Nuys property

Meanwhile, a 390-unit property dubbed the San Regis in Van Nuys sold for $69 million in April, according to CoStar Group Inc. It’s the largest multifamily transaction by unit count to sell in Van Nuys since 2015, according to Marcus & Millichap. San Regis is made up of five buildings and two levels of underground parking, and it has a large swimming pool, three pickleball courts and a fitness center.

Nuveen Real Estate sold the property to an unnamed buyer. Green, Harris and Grabiec represented the seller in the transaction.

“As the boundaries and strong demographics of Sherman Oaks and Encino continue to push north, Van Nuys has benefitted from strong demand for renovated apartment homes in the San Fernando Valley,” Green said. “Because of nearly $17 million invested in capital improvements since 2020, this 1960s-vintage asset’s effective age is closer to 2000, which helped drive interest and activity.”

Grabiec added that “we continue to provide investors with multiple opportunities to add value, including converting market-rate apartments to affordable housing.”

The property is near the Van Nuys G Line Metro station and the Van Nuys Metrolink train station.

Potential issues ahead

According to Marcus & Millichap’s multifamily investment forecast, there are some “near-term hurdles” facing Los Angeles.

One hurdle is strict immigration policies. The area is home to the fourth-largest immigration population, according to the report.

The turmoil in the entertainment industry – leading to a decline in jobs – may also be impacting the renter pool. In the last three years, the brokerage found that the number of Angelenos in the motion picture industry declined by at least 40,000.

One bright side for investors, however, is that the market is expected to have very little supply pressure this year. Only 6,200 units are coming online, which is the lowest number since 2015.

A number of investors are interested in the area, with L.A. being the major market for the most transactions last year. Assets below $5 million made up the bulk of those sales.

The San Fernando Valley is expected to represent a number of trades in 2026.