LOS ANGELES, CA 90027 | 18 UNITS | APPROX 20,190 SF | MULTIFAMILY SALE TRANSACTION | LOS ANGELES SUBMARKET
Overview
The owners consisted of 3 siblings who had inherited both buildings from their now deceased parents. The siblings were struggling with the day to day requirements and demands of these LA City rent controlled assets and as a result, both properties fell into disrepair. One was seized by the City of LA task force (REAP) in 2007 and both properties had rents that were more than 50% below the market for similar assets. The owners reached out to The Apartment Expert Group because of his strong market knowledge, tireless dedication to his clients and KW Commercial’s up-to-the-minute market research. The owners insisted that both buildings (over 2 miles apart) must be sold concurrently to the same buyer with one escrow, consequently, the buyer pool was potentially very limited. The Apartment Expert Group knew that a strategic buyer must be found, possibly one that owned similar assets nearby or needed to complete a 1031 exchange.
Results
The Apartment Expert Group executed his planned marketing campaign and was able to reach nearly every conceivable qualified buyer through his extensive investor relationships. The Apartment Expert Group quickly generated several qualified and competing offers within a short period, one who owned over 100 units nearby. The Apartment Expert Group quickly went to work evaluating and underwriting each offer to determine the Buyer’s ability to perform during the escrow. After consulting with the Sellers, the right buyer was selected. The Apartment Expert Group negotiated a very precise and exacting ALL-CASH purchase agreement that allowed for both buildings to be sold together, concurrently to the same buyer with a short due diligence period and a 30 day close of escrow.
Testimonial
“On behalf of my family partners, I would like to commend you for your exceptional brokerage skills in achieving a smooth and timely sale of our two (2) apartment buildings. The properties have been in our family for decades and when it came time to sell them, we were very pleased that we choose you. Your excellent reputation and tenacity was what attracted us to you, but it was your drive, professionalism, patience and transactional expertise that won us over! Your thorough market knowledge, extensive buyer network and creative talents helped us achieve our goals.”