LOS ANGELES, CA 90006 | 40 UNITS | APPROX 20,190 SF | MULTIFAMILY SALE TRANSACTION | LOS ANGELES SUBMARKET
Overview
2650-80 San Marino Street is a traditional 1940’s, value-added, multifamily garden style apartment community located in a strong, yet transitioning rental market. The unit mix consists of thirty (30) single and ten (10) 1+1 style units. The rents were approx. 40% below market and were subject to LA City rent control. The ownership hired The Apartment Expert Group after a careful review of our broker opinion of value and strategic marketing plan for the asset. The asset had been in the same family for over 40 years through 3 generations of family members. The current managing family member resided in Minnesota. All communication and correspondence was to be handled by the owner’s out of state real estate attorney.
Results
The Apartment Expert Group’s strategic and comprehensive marketing campaign generated 10 qualified and competing offers. 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 specifically advised to not disturb residents or walk the property under any circumstance. Any property showings were to be with an accepted offer only. The eventual Buyer was represented by a local broker other than KW Commercial.
Value Added
The Apartment Expert Group negotiated a very precise and exacting purchase agreement with the most qualified Buyer who was willing to pay the highest price for the asset. The Buyer required traditional financing for the property with nearly 45% down payment. Acquiring financing for the property, with nearly 40% below market rents was a difficult task. The Apartment Expert Group’s expertise and ability to navigate a difficult lending environment was instrumental to the deal transacting. The Apartment Expert Group carefully interviewed each potential lender to determine the best “fit” for the property and was the major catalyst in achieving a strong appraisal. Overall, The Apartment Expert Group’s transactional expertise and ability to carefully navigate a difficult lending environment was the key to another successful closing.