Buyers price a mixed-use apartment building mainly on its income, using cap rate and gross rent multiplier, then check price per unit and per square foot against recent sales. At 16300 Ventura Blvd in Encino, The Saghian Group sold a 49-unit building with two commercial units out of a trust for $31,250,000, a 5.36% cap rate and a 13 GRM.
Owners in the San Fernando Valley ask us this question all the time, especially families and trustees holding a building with shops on the ground floor and apartments above. Here's how it worked on a real sale.
What was sold at 16300 Ventura Blvd?
A mixed-use property on the Ventura Boulevard corridor in Encino: 49 residential units plus two commercial units anchored by JP Morgan. It has about 10,000 square feet of retail and office space and 240 feet of frontage on Ventura Boulevard. The apartments average about 958 square feet, and the building has an on-site jacuzzi, a gym, in-unit washers and dryers, EV charging and two levels of subterranean parking (66 commercial and 73 residential spaces). The Saghian Group represented both the buyer and the seller. You can see the full details on the 16300 Ventura Blvd closing page.
How do buyers put a price on a building like this?
They start with income. The two numbers you'll hear most are:
- Cap rate: the building's net operating income (rent minus operating expenses, before the mortgage) divided by the price. This sale closed at a 5.36% cap rate.
- GRM (gross rent multiplier): the price divided by the gross annual rent. This sale closed at a 13 GRM.
Then buyers sanity-check the price per unit and per square foot against other sales. 16300 Ventura sold for about $637,755 per unit and $546 per square foot. No single number sets the price. A building with large units, parking and a strong tenant can earn a lower cap rate (a higher price) than a plain building with the same rent.
Does the retail on the ground floor help or hurt the price?
It depends on the tenant and the lease. Retail adds a second income stream, but buyers look hard at who the tenant is, how long the lease runs and what it costs to re-lease the space if it goes vacant. A bank anchor on a busy corridor reads very differently from a vacant storefront. Mixed-use properties of this size are also uncommon in the Valley, so the pool of buyers is smaller and more specialized. That's why marketing to the right buyers matters as much as the asking price.
Was this a probate sale?
No. It was a trust sale. When a building is held in a living trust, the successor trustee usually sells it under the trust's own authority, and in most cases no probate court confirmation is needed. That generally means a faster, more private process than a court-supervised probate sale. Trustees still have duties to the beneficiaries, so a well-documented valuation and an open marketing process protect everyone. Every trust is different, so check with your trust attorney. Our trustee's guide to selling a trust-owned apartment building and our probate and trust sales page walk through each step.
Does Measure ULA apply to a sale like this?
Encino is inside the City of Los Angeles, so yes, Measure ULA's transfer tax applies to sales there above the threshold. For sales closing July 1, 2026 through June 30, 2027, the tax is 4% of the full price above $5,400,000 and 5.5% at $10,900,000 or more, on top of the regular city and county transfer taxes. By local custom the seller usually pays, though it's negotiable. A sale at this price today would fall in the 5.5% tier, so it's worth planning for before you list. See our Measure ULA guide for apartment sellers.
How do I find out what my building is worth?
Start with your rent roll and a list of operating expenses. We compare your building with recent sales nearby, including our own closings, and give you a range based on cap rate, GRM and price per unit. The Saghian Group has closed 44 sales totaling $202.6M in the San Fernando Valley, and the team's overall track record is $425M+ (David Saghian's personal closed sales are $325M+). See how we count our sales and our Encino multifamily broker page for more Valley sales.
Thinking about selling a building in Encino or the Valley?
David Saghian personally handles every sale. Call (310) 401-1559, email dsaghian@lyonstahl.com, or request a free property valuation. There's no cost and no obligation, and trustees and families are welcome to call before making any decision.