SoldBroker Activity · Entry № 26

Why I Like This 1990 Valley Glen Apartment Deal

Everyone wants newer apartment buildings in Los Angeles. This sale explains why I like it. 

PublishedJune 2026
StatusSold · Closed May 28, 2026
DATELINEValley Glen, Los Angeles
6034 Fulton Ave hero photo
FIG. 01, 6034 Fulton Ave, Van Nuys (Valley Glen), CA 91401. Listing photo via Marcus and Millichap.
Four takeawaysFour things an operator takes away from 6034 Fulton Ave.
  1. You're Buying a Non-RSO Asset. Everyone wants to buy newer apartment buildings in Los Angeles. This sale explains why. This isn't the highest cap rate you'll find. It isn't a major value-add opportunity either. But for long-term investors, it checks many of the boxes that matter most: post-1979 construction, AB1482, lower maintenance, and a realistic path to growing cash flow over time with reasonable rent increases up to 10% a year.   That's why I like it.
  2. Today, it's often cheaper to buy a 1990 apartment building than it is to build one.  Buy Below Replacement Cost.   At roughly $303/SF, the buyer likely paid well below what it would cost to build.  If I was the new owner, I'd repaint the building and add architectural panels to the front of it and improve the landscape.  This can push rents up. 
  3.  Lower Maintenance. Another reason I like a building that is 35 years old is because it typically means lower expenses, less plumbing issues and HVAC.  As a buyer I would try to figure out how much to invest in this building going in on day 1 to reduce these expenses even more and avoid headaches.  
  4. A $100,000 Facelift Could Push the Yield on Cost Above 6%.  One of the things I like most about this deal is that it doesn't require a major renovation. If the new owner invests $100,000 to repaint the property, improve the landscaping, upgrade the curb appeal, and modernize the common areas. If those improvements support just a 5% average rent increase, here's what the numbers look like: Current Gross Revenue (estimated from GRM): $266,484/year After a 5% Rent Increase: $279,808/year Assuming 35% Operating Expenses: NOI ≈ $181,875/year Total Basis: $3.01 million ($2.91M purchase + $100K improvements) Projected Yield on Cost: $181,875 ÷ $3,010,000 = 6% A 6% stabilized yield on cost isn't guaranteed but it's a realistic target that keeps an investor out of negative leverage and room for rent growth. 
Deal Stats · 6034 Fulton Ave
Sale Price
$2,910,000
confirmed at close
Units
12
8 × 1BD · 4 × 2BD
Price / Unit
$242,500
per door
Price / SF
$302.68
9,614 gross SF
CAP (Current)
5.36%
at close, confirmed
GRM (Current)
10.92
at close
Year Built
1990
non-RSO · AB 1482 applies
Lot SF
8,596
0.20 acres · R3-1
Hold Period
137 mo.
~11.4 years, seller Clyde Berkus
Parking
12 covered
1 stall per unit

What an Operator Sees

I see a low-maintenance, post-1979 asset that gives an owner the ability to fix it up, raise rents and be Non-RSO.   A modest investment in curb appeal, common areas, and property exterior could justify higher rents without taking on too much construction management time. Even a 5% increase in rental income could push the property's yield on cost above 6%.

I think its a simple deal.  242k/door is a good number and $302/SF is below replacement cost.  That's why I like it.  If someone offered me this building or a 1962 apartment building at a slightly higher cap rate, I'd take this one every time.

Agree or disagree? I'd love to hear what you'd pay for this property.

I track every commercial real estate sale in Los Angeles so you don't have to.

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OMs: David@AtlasBrief.LA

Coming Soon

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    https://atlasbrief.la/tax-appeals
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  4. Atlas Palisades Rebuild Guide — A free resource connecting Pacific Palisades owners with builders, architects, engineers, subcontractors, suppliers, and rebuilding resources.

Brokers
Buyer & Listing Broker
Glen Scher
Senior Managing Director Investments
Marcus & Millichap
Written from the field

David Safai, operator, developer, GC.

Atlas Home Builders, Inc. is a Los Angeles owner-operator and general contractor. If you are a broker with a listing you want an honest read on, send the OM and the T-12 to David@AtlasBrief.La.

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