Glen and Filip Featured in the Media

Los Angeles Multi-Family Commercial Real Estate: A 2020 Analysis and Projections for 2021 With Glen Scher Co-Founder of The LAAA Team of Marcus & Millichap

The LAAA Team of Marcus & Millichap, founded by Glen Scher and Filip Niculete in late 2018, is the #1 most active multi-family sales team in Los Angeles County two years running. In 2019, they took over the market with 55 closed transactions, $160M in sales, and 359 multi-family units sold, which quickly established the young team as a Los Angeles real estate powerhouse. Although 2020 has been a difficult year, they’ve weathered the storm with their agility, adaptability, and client-centered approach. They finished the year with 42 closed transactions, $122M in sales, and 304 multi-family units sold. Although less than their 2019 numbers, they still maintained the top spot in the most active agent rankings for 2020 as the entire market felt the impacts of COVID-19. As Glen Scher looks ahead to 2021, he is optimistic about the future of multi-family investment. 

Glen Scher and Filip Niculete met 6 years ago while working under the Marcus Millichap brokerage firm. The pair started out as junior agents and quickly rose the ranks to senior agents with junior teams of their own. Over the years, they formed a strong friendship and business relationship. By 2018, they both were experiencing success and decided to join forces to found LAAA. 2019 was a banner year for their team. 

“We’re both young, hungry and focused,” Scher explains, “I think the market responds to that.” 

When 2020 began, Marcus & Millichap had just wrapped their 5th record-breaking year in a row and the entire office was buzzing with anticipation over the year to come. Then, in March of 2020, COVID-19 radically altered the real estate landscape. At first, retail and office real estate was hit the hardest, but multi-family real estate soon began to feel the effects of the pandemic as well. 

“In a way, 2020 provided the perfect storm,” Scher explains. 

First, LA county enforced rent pardons, which meant that tenants legally did not have to pay their rent if they were unable. However, this decision was deeply detrimental to the thousands of landlords across the city. 

“Most people assume that the multi-family real estate in LA is owned by billionaires,” Scher says, “However, this isn’t the case. Most of the smaller 5-20 unit apartment buildings are owned by mom and pop investors that live off their rental income.” 

Although the renters no longer had to pay their landlords, the building owners still had hefty loan, mortgage and insurance payments due. This put a lot of owners in a really bad spot and they were forced to sell. For LAAA, it was more important than ever that they could support these sellers, properly market the properties, and broker fair deals even amid desperate times.

The absence of tenant rent affected the market in other areas too. Now investors were more reluctant to buy because they had no guarantee when rental income would return. To make matters worse, lenders were suddenly skittish and made it harder than ever to secure a loan. Finally, in October - November, the perfect storm reached its climax, when the outcome of Prop 21 hung in the balance. Prop 21 threatened increased local rent control for housing in Los Angeles County. While awaiting the results, many multi-family investors bided their time. Fortunately for investors, the proposition did not pass. 

As 2020 draws to a close, now 95% of tenants are paying their rent again and LAAA has seen a spike in activity as buyers are regaining their confidence in the market and taking advantage of the record low-interest rates. As Scher looks ahead to 2021, he anticipates a very hot first quarter as new buyers enter the scene in search of multi-family unit investments. By quarter 2, the majority of these deals will be closing. 

Glen Scher and Filip Niculete continue to prioritize their client-relationships. 

“Now more than ever, people need support and advice they can trust,” says Scher, “We are committed to advising in the best interest of our clients.” The pair continually return to their shared philosophy: “With a refined marketing strategy, years in the making, LAAA strives to optimize your transaction in three distinct ways: Exposure. Timing. Strategy.” 

Their decision to focus exclusively on multi-family commercial units has positioned them as experts in their industry. Furthermore, their marketing strategies are second to none, with a database of over 40K apartment investors and 10K brokers at their disposal, clients know they are receiving the best level of service and resources when they partner with The LAAA Team of Marcus & Millichap.