42 Units | East Hollywood | LIHTC Disposition
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The LAAA Team of Marcus & Millichap is proud to announce the successful closing of 1536 N Serrano Ave, a 42-unit LIHTC apartment community in East Hollywood, Los Angeles, which sold for $7,600,000.
When the seller's asset management team approached us with financials on two LIHTC properties, we did what we always do: the work. We built a full underwriting package tailored to the property's TCAC regulatory agreements and Section 8 voucher overlay, prepared draft OMs with detailed pricing models and closing statements for both properties, and presented a comprehensive marketing strategy to the seller.
After analyzing the buyer pool, we recommended splitting the two properties into separate listings rather than selling them as a portfolio. Each property had a distinct regulatory profile, and the buyers most interested in a 42-unit building in East Hollywood were not the same buyers who would target a property in the West Valley. The seller agreed, and we launched Serrano individually at $7,995,000.
Our marketing campaign included email blasts to over 25,000 principals and brokers, listings across eight online platforms including LoopNet, CoStar, Crexi, and Marcus & Millichap, direct phone calls to probable buyers, and a price reduction postcard mailed to area investors. The online exposure alone generated over 22,000 views on LoopNet. LIHTC narrows the buyer pool significantly. This is not a property that a conventional apartment investor can simply acquire and operate. It requires specialized knowledge of affordable housing compliance, TCAC regulations, and Section 8 administration. That filtering effect is exactly why the marketing breadth was critical: we needed to reach every qualified buyer in the market.
After generating multiple inquiries from several qualified parties, an experienced affordable housing buyer emerged as the strongest candidate. In a thin and specialized buyer pool, we advised the seller against countering over a narrow spread. The risk of losing a qualified and motivated buyer over $100,000 was real. The seller agreed, and we secured a fully executed contract at $7,600,000, representing 95% of list price, with a 30-day due diligence period and a TCAC transfer approval deadline built into the escrow timeline.
The LAAA Team of Marcus & Millichap is proud to announce the successful closing of 1536 N Serrano Ave, a 42-unit LIHTC apartment community in East Hollywood, Los Angeles, which sold for $7,600,000.
When the seller's asset management team approached us with financials on two LIHTC properties, we did what we always do: the work. We built a full underwriting package tailored to the property's TCAC regulatory agreements and Section 8 voucher overlay, prepared draft OMs with detailed pricing models and closing statements for both properties, and presented a comprehensive marketing strategy to the seller.
After analyzing the buyer pool, we recommended splitting the two properties into separate listings rather than selling them as a portfolio. Each property had a distinct regulatory profile, and the buyers most interested in a 42-unit building in East Hollywood were not the same buyers who would target a property in the West Valley. The seller agreed, and we launched Serrano individually at $7,995,000.
Our marketing campaign included email blasts to over 25,000 principals and brokers, listings across eight online platforms including LoopNet, CoStar, Crexi, and Marcus & Millichap, direct phone calls to probable buyers, and a price reduction postcard mailed to area investors. The online exposure alone generated over 22,000 views on LoopNet. LIHTC narrows the buyer pool significantly. This is not a property that a conventional apartment investor can simply acquire and operate. It requires specialized knowledge of affordable housing compliance, TCAC regulations, and Section 8 administration. That filtering effect is exactly why the marketing breadth was critical: we needed to reach every qualified buyer in the market.
