Question 1

Why invest in Los Angeles apartment buildings?

Accepted Answer

Los Angeles has a permanent housing shortage, strong rental demand driven by population density and job growth, and limited new supply due to high construction costs and regulatory barriers. These fundamentals support stable occupancy rates and long-term rent growth for multifamily investors.

Question 2

What is a good cap rate for apartment buildings in LA?

Accepted Answer

Cap rates for LA apartment buildings typically range from 4.0% to 6.5% depending on location, building age, unit count, and rent control status. RSO buildings in prime Westside locations trade at lower cap rates (4.0-5.0%), while value-add properties in emerging neighborhoods can reach 5.5-6.5%.

Question 3

How does rent control affect apartment building values in Los Angeles?

Accepted Answer

Los Angeles has two rent control frameworks: RSO (Rent Stabilization Ordinance, for buildings built before October 1978) and RSTPO (for buildings built between 1978 and February 2025 in the City of LA, and statewide AB 1482 protections). Rent-controlled buildings are valued based on current and projected allowable rent increases, vacancy decontrol potential, and operating expense ratios.

Question 4

What is Glen Scher & Filip Niculete's track record?

Accepted Answer

Glen Scher, Filip Niculete, and the LAAA Team at Marcus & Millichap have closed 455+ multifamily transactions totaling over $1.45B+ in sales volume since 2013. Our team of 10 investment specialists covers all of Los Angeles County, with particular depth in the San Fernando Valley, Westside, Koreatown, and Hollywood submarkets.

Question 5

What is the ULA tax and how does it affect apartment sales?

Accepted Answer

The ULA (United to House LA) transfer tax, also known as Measure ULA, imposes a 4% tax on property sales between $5.3M-$10.6M and a 5.5% tax on sales above $10.6M within the City of Los Angeles (thresholds CPI-indexed annually from the original $5M/$10M). This additional cost significantly impacts transaction economics and has led many owners to explore 1031 exchanges, installment sales, or entity-level transfers as alternatives.

Question 6

What is the typical timeline to sell an apartment building?

Accepted Answer

The typical marketing period for a well-priced LA apartment building is 60-120 days from listing to accepted offer, with an additional 30-60 day escrow period. Total timeline from listing to closing is usually 3-6 months. Factors affecting timeline include pricing, property condition, rent roll strength, and market conditions.

Question 7

How do Glen Scher & Filip Niculete market apartment buildings for sale?

Accepted Answer

We are proactive marketers, not reactive. For every listing, we call 100+ probable buyers directly — 1031 exchange buyers, recent purchasers, and local apartment building owners. Our 30,000+ verified email database instantly exposes your property to thousands of investors and brokers simultaneously, creating competition among buyers. Every listing receives premium placement on CoStar, LoopNet, Crexi, MLS, Redfin, and Marcus & Millichap, averaging 10,000+ views per property.

Question 8

What is Return on Equity and why does it matter for apartment owners?

Accepted Answer

Return on Equity (ROE) measures how hard your current equity is working. If you bought a building for $500K that is now worth $1.5M and generates $50K/year in cash flow, your ROI appears to be 10% — but your ROE is only 3.33%. Many long-term apartment owners have significant equity earning below-market returns. A 1031 exchange can redeploy that equity into higher-yielding investments, with our clients averaging an 85% increase in net cash flow post-exchange.

Question 9

Do I need to put a for sale sign on my apartment building?

Accepted Answer

No. We never put for sale signs on apartment buildings and we never hold open houses. Selling multifamily investment properties is fundamentally different from selling single-family homes — the buyer pool is smaller, more targeted, and investor-based. We proactively reach buyers through direct outreach and our 30,000+ email database. We also minimize disruption to tenants throughout the entire marketing and sale process.

Question 10

What sale-to-list ratio do Glen Scher & Filip Niculete achieve?

Accepted Answer

Our sellers achieve 98% of list price on average, with 29% of our listings selling at or above asking price. Our average days on market is just 16 days from listing to accepted offer, with an average 10-day due diligence period. These results reflect our proactive marketing approach and deep buyer relationships built over 455+ closed transactions.

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Frequently Asked Questions About LA Multifamily Investing