4211 McLaughlin Ave, Los Angeles

the successful closing of this 5-unit multifamily property in Mar Vista, located at 4211 McLaughlin Ave.

Deal Story

We listed this property in mid-September for a repeat client of ours. Within 10 days of hitting the market, we generated six offers from qualified buyers. These buyers came from outside brokers as well as from our own clients, and they ranged from $1.55M on the low end to $1.7M on the high end. After the seller gave counter offers to the top buyers, one buyer emerged as the clear choice. This buyer, another client of ours, was coming out of a 1031 exchange, and he had a proven

After opening escrow, the buyer's inspector came back with his report estimating $50k - $75k in deferred maintenance on the sewer line, electrical systems, and other general repairs. The buyer wanted a large price reduction before removing his contingencies, but the seller had more leverage in this situation due to our marketing efforts generating 5 backup buyers.

In the end, we negotiated that the buyer would receive a $15,000 price reduction in exchange for removing all of his contingencies and releasing his nonrefundable deposit out of escrow. From then on, escrow went off without a hitch leading to our closing on November 28th, which was less than 75 days after we signed the listing agreement with the seller.

2023 Record Sale

At $352,000 per unit, this is the highest price/unit achieved in the Mar Vista Submarket this year for a rent-controlled multifamily property. The next highest was 3735 Inglewood Blvd which sold for $307,600 per unit.

Rare Closing this Year

This marks our 20th closing of the year but only the fifth deal this year where the buyer got a new loan. In other words, 15 of our 20 closings have fallen into one of three categories: 1) all cash buyer, 2) buyer assumed seller's loan, or 3) seller carry financing.

The buyer worked with Marcus & Millichap Capital Corp. (MMCC) who originated the loan. MMCC's relationships allowed this buyer to achieve an aggressive 62% LTV even though that meant negative cash flow from day 1. The loan's program is for experienced buyers (like the one who bought this deal) who can show a proven

Seller Exchanging into Out of State Triple-Net (NNN)

The seller is already in escrow to buy his exchange upleg. He used all the "free time" in a 1031 exchange, when his downleg was in escrow but not yet closed, to search for his upleg. By being proactive, our seller eliminated any risk involved with the 1031 exchange...