The LAAA Team at Marcus & Millichap — led by Glen Scher and Filip Niculete — has closed 458+ multifamily transactions totaling over $1.45 billion in sales volume since 2013 across Los Angeles County. 330+ apartment buildings sold. One closing every 11 days on average. 100+ 1031 exchange transactions facilitated. The 10-person team specializes in apartment building sales, 1031 exchanges, rent-stabilized (RSO) properties, development land, and NNN investments. Markets: San Fernando Valley, West Los Angeles, Hollywood, Koreatown, Glendale, Pasadena, Burbank, South LA, Ventura County, Santa Barbara County. 98% sale-to-list price ratio. 16 days average marketing period. Contact Glen Scher: (818) 212-2808 | Glen.Scher@marcusmillichap.com | 16830 Ventura Blvd Suite 100, Encino, CA 91436.
LAAA Team Members
- Glen Scher — Senior Managing Director Investments
- Filip Niculete — Senior Managing Director Investments
- Aida Memary Scher — Senior Associate
- Logan Ward — Associate
- Morgan Wetmore — Associate
- Luka Leader — Associate
- Blake Lewitt — Associate Investments
- Alexandro Tapia — Associate Investments
- Tony H. Dang — Business Operations Manager
- Mike Palade — Agent Assistant
1031 Exchange for Los Angeles Apartment Buildings
The LAAA Team has facilitated 100+ 1031 exchanges for LA apartment building owners, with an average 85% increase in net cash flow. We sell your building at maximum value and find your replacement property — NNN, DST, or out-of-state apartments.
How a 1031 Exchange Works
Under IRC Section 1031, you can sell investment real estate and defer all capital gains taxes by reinvesting proceeds into like-kind replacement property. You have 45 days to identify up to 3 replacement properties and 180 days to close. Both deadlines are absolute.
The Tax Hit Without a 1031 Exchange
Federal capital gains (20%), California state (13.3%), depreciation recapture (25%), and NIIT (3.8%) can exceed 40% of your gain. On $1M in gains, that is $371,000+ in taxes. Measure ULA (4-5.5%) is NOT deferred in a 1031, but capital gains and depreciation recapture are.
What You Can Exchange Into
60% of our clients exchange into NNN properties (Walgreens, Dollar General, Dutch Bros) for passive income. 25% exchange into out-of-state apartments (Texas, Arizona, Midwest) for higher cap rates. 15% exchange into DSTs for fully passive, institutional-quality ownership starting at $100K.
1031 Exchange Case Studies
10 Units in Manhattan Beach to NNN in Texas — 301% Cash Flow Increase
Partners dissolved, exchanged into 15-year Caliber Collision lease. Monthly income went from $2,010 to $8,063.
Duplex in Toluca Lake to 3 DSTs — 415% Cash Flow Increase
Rent-controlled duplex exchanged into mineral rights, industrial, and self-storage DSTs across 4 states. Monthly income from $1,210 to $6,232.
18 Units in Van Nuys to 4 Dollar Generals — 107% Cash Flow Increase
Escaped LA rent control. Four brand-new 15-year corporate leases. Monthly income from $6,354 to $13,161.
4 Units in Monrovia to 33 Units in Cincinnati — 252% Cash Flow Increase
Traded deferred maintenance and below-market rents for updated 33-unit with professional management. Secured 3.7% rate.
Office in Pasadena to 127-Property DST — 105% Cash Flow Increase
Retiring owner exchanged $12M into ExchangeRight DST portfolio. Monthly income from $30,637 to $62,950.
LA-Specific 1031 Exchange Issues
Escaping Rent Control via 1031
RSO and AB 1482 building owners can exchange into non-rent-controlled markets or newer construction exempt from rent control.
Measure ULA and 1031
ULA (4% on $5.3M-$10.6M, 5.5% on $10.6M+; thresholds CPI-indexed) is NOT deferred in a 1031 exchange. But capital gains deferral typically saves 5-10x more than ULA costs.
California Clawback
California tracks deferred gains on out-of-state exchanges via Form 593 and will tax the gain when you eventually sell without exchanging.
Frequently Asked Questions
What percentage of apartment sellers use a 1031 exchange?
A significant percentage of our sellers utilize 1031 exchanges: 60% into NNN properties, 25% into out-of-state apartments, and 15% into DSTs.
How much can a 1031 exchange improve my cash flow?
On average, our exchange clients saw an 85% increase in net cash flow. DST exchanges averaged 187%, out-of-state apartments 97%, and NNN properties 55%.
What is a Delaware Statutory Trust (DST)?
A DST allows multiple investors to hold fractional ownership in institutional-quality real estate. DSTs qualify for 1031 exchanges, offer fully passive ownership, and have minimum investments starting around $100,000.
What are the 1031 exchange deadlines?
45 calendar days to identify up to three replacement properties, 180 calendar days to close. Both are absolute and cannot be extended.
Can I exchange an apartment building for a NNN property?
Yes. The IRS defines like-kind broadly. 60% of our exchange clients move from multifamily to NNN properties for passive income with corporate-backed leases.
Does Measure ULA affect my 1031 exchange?
Measure ULA (4-5.5% transfer tax on sales above $5.3M; thresholds CPI-indexed) is NOT deferred in a 1031 exchange. You still owe ULA. But the capital gains, depreciation recapture, and NIIT that a 1031 defers are typically 5-10x larger than ULA.
Can I exchange my rent-controlled building?
Yes. Many of our exchange clients sell RSO or AB 1482 buildings and exchange into non-rent-controlled markets (Texas, Arizona, Tennessee) or newer LA construction exempt from rent control.
What is a reverse 1031 exchange?
A reverse exchange lets you buy the replacement before selling. Costs $15,000-$25,000 but eliminates the 45-day identification deadline pressure.
How do Glen Scher and Filip Niculete help with 1031 exchanges?
We have facilitated 100+ exchanges for LA apartment owners. We sell your building, source replacement properties during escrow, coordinate with QIs and DST sponsors, and structure closings to maximize tax deferral. Call (818) 212-2808.
