The portfolio was purchased by a single buyer, and both escrows concluded on the same day. However, it’s important to note that there were two distinct escrows involving separate loan assumptions and different purchase prices. Despite this, a single contract was executed by buyer and seller to govern both escrows.

The properties were sold with deferred maintenance, estimated at over $250,000 in total, and when we closed there were 6 vacant units spread between the three adjacent properties. The buyer will be responsible for all deferred maintenance costs as well as leasing out the vacant units after close of escrow.

The buyer is a local investor and a repeat customer, having purchased past listings of ours. The first listing that he bought from us was a 2 property, 20-unit portfolio in Sherman Oaks back in 2020, and that was his first ever investment into apartments. Now, he owns 65 apartment units between 6 different buildings, 5 of which we have represented him on the purchase for. All of his properties are in prime locations throughout LA County, and he is looking to buy more.

The sellers are also repeat clients of ours. This is the 5th deal we’ve represented them as sellers, and after their exchange properties close, we’ll have 4 additional properties closed as their buyer representative. The sellers are exchanging into triple-net leased properties (NNN), focusing on properties outside of California, and they already have a couple of deals they are writing offers on to purchase. Their 1031 exchange is expected to increase their net cash flow and add depreciation to shield that added cash flow from income taxes.

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