STUDIO CITY, CA 91604 | 6 UNITS | APPROX 6,418 SF | MULTIFAMILY SALE TRANSACTION | SAN FERNANDO VALLEY SUBMARKET
Overview
12914 Valleyheart Drive is a classic 1960’s apartment community located in Studio City, one of the San Fernando Valley’s best rental markets. The asset featured renovated interiors and updated building systems including newer roof and copper plumbing. The ownership hired The Apartment Expert Group at KW Commercial to liquidate the asset in order to dissolve a family real estate investment partnership consisting of the family patriarch and his two sons. The family owned the asset for less than 3 years and was concerned that the uncertain economic market had eroded a significant portion of their equity. The ownership engaged The Apartment Expert Group to reevaluate the asset’s potential marketability.
Results
The Apartment Expert Group’s strategic and comprehensive marketing campaign generated four qualified and competing offers within a short period. The Apartment Expert Group’s marketing campaign reached every conceivable potential buyer through his comprehensive exhaustive personal database of principals, direct presentations, a strategic cold calling campaign, warm calls to key owners in the area, hard copy mailers and e-mail blasts. We fielded hundreds of inquiries from potential buyers and agents. Buyers and agents were encouraged to tour a recently vacated apartment unit with The Apartment Expert Group to preview the quality improvements. The eventual Buyer turned out to be the owner of a neighboring building. The Buyer, because of his ownership nearby, paid a premium for the asset.
Value Added
The Apartment Expert Group negotiated a very precise and exacting purchase agreement with the most qualified Buyer that allowed for a very short due diligence period and thus removing all contingencies in just 21 days following acceptance . Consequently, The Apartment Expert Group successfully negotiated another closed transaction at 94% of the offering price and thus netting the owner maximum proceeds for his 1031 exchange.