Over the years, we have formed strong partnerships with affordable and supportive housing providers in LA, thanks to our extensive network of developers. These buyers seek fully vacant buildings, which are rare in the city unless they are newly constructed and not yet leased. With our expertise in selling new construction properties, we are well-positioned to assist these buyers.

One of our supportive housing buyers approached us for help in finding a suitable building in LA Council District 7, an area where they didn’t have any affordable units. We reached out to our developer contacts in that region, given our successful track record there.

Initially, the seller of 10150 Hillhaven wasn’t interested in selling, as they were a long-term developer with a hold strategy. However, after explaining the buyer’s profile and our ability to secure a premium price, their interest grew. We negotiated a great price of $17,750,000 and entered escrow.

Despite a smooth escrow process, it took nearly a year to close the deal. The property was “almost” complete when we opened escrow in January 2022, with an expected closing date of February 28, 2022. However, delays in obtaining the final certificate of occupancy (CofO) prolonged the process. City inspections and various department approvals caused significant delays. After nine months longer than expected, we finally received the CofO last week, leading to a successful closing.

The seller put in substantial effort to overcome obstacles, but the achieved price made it worthwhile. The record-breaking price we obtained exceeded market value and investor expectations. Additionally, the seller was able to close escrow quickly after receiving the CofO, avoiding holding costs and lease-up risks.

Our affordable/supportive housing buyer is delighted with the property acquisition in a desired district for adding affordable units. We are honored to contribute to addressing homelessness in Southern California by collaborating with these types of buyers.

Record-Breaking Sale in Tujunga, CA

This transaction sets a new record in Tujunga, CA, surpassing all previous sales in three different categories. Furthermore, our recent deal at 10240 Commerce Ave claimed the second-highest sale in Tujunga, making us responsible for the top two sale prices in the city’s history.

#1 Highest Gross Sale Price Ever ($17,750,000)

#1 Highest Price/Unit Ever ($522,059 per Unit)

#1 Highest Price/SqFt Ever ($518.08 per SqFt).

Read More

This deal unfolded seamlessly. We listed the property in March 2023 and received an immediate full-price offer from a highly qualified buyer. The sellers accepted the offer, and within a week, we opened escrow. The buyer fulfilled all obligations on schedule without requesting any adjustments, and we successfully closed escrow on May 31st, just over 2 months after listing.

What makes this deal remarkable is not just the transaction itself but the journey to earn our clients’ trust. It started with a cold call from our agent in late 2018. Over the next four years, we engaged in multiple interactions, gaining their trust and eventually facilitating the exchange of their underperforming apartments. From the initial contact to closing escrow, it took a total of 4 years, 5 months, and 16 days.

This deal exemplifies our long-term thinking and client-centric approach. We prioritize our clients’ interests above all else, providing trusted advice rather than pursuing short-term gains. We advise clients to hold onto their assets when selling might not be the best option and remain dedicated advisors throughout their ownership. We assure our clients that we will be there to assist them whenever they decide to sell, now or in the future.

Read More

Initially, the seller expressed a willingness to sell off-market without granting exclusive representation. However, we emphasized the benefits of exclusive listing, backed by

our experience representing numerous sellers. Exclusive representation maximizes results in a sale, contrary to the belief that having multiple agents brings more buyers. We explained that an exclusive listing enables us to expose the property to our extensive network of over 20,000 investors and brokers, along with the wider online audience, resulting in greater exposure and a higher chance of multiple offers and competitive bidding.

Eventually, the sellers agreed to an exclusive listing after unsuccessful off-market attempts. They chose our team based on our impressive track record in the San Fernando Valley, which we demonstrated by presenting them with a list of properties we had represented in the area.

Listing the property in early May 2022, we swiftly generated three offers from qualified buyers. After negotiating with the buyers, the winning offer stood out with the best price and terms. Escrow was opened just two weeks after signing the listing agreement, highlighting the effectiveness of an exclusive listing. Despite months of lackluster results in the off-market phase, we successfully generated multiple offers and opened escrow at a record-breaking price within a short period.

While the escrow process was mostly smooth, a minor hurdle arose when the buyer received the inspection report, revealing long-standing deferred maintenance issues. To address this, we negotiated a reasonable credit to the purchase price in exchange for the buyer waiving contingencies, making the escrow deposit nonrefundable. With this resolved, we smoothly proceeded to the successful close of escrow.

Record Sale in North Hollywood

For LA rent-controlled apartment buildings (built before October 1978) in the 91606 zip code of North Hollywood, this sale has cemented itself in the all-time record books according to CoStar’s property sale records. At $344,167 per Unit and $390.47 per SqFt, this sale has become the #1 and #6 highest sales ever achieved, respectively.

Read More

We met the seller in March 2019 when he considered selling the property through a 1031 exchange. At that time, he had already finished renovating the property and wanted to get away from LA rent control, a common concern for property owners. However, due to sentimental reasons, he decided not to proceed with the exchange.

In early 2022, the seller was finally ready to sell and exchange the property. We listed it in late February and within two weeks, we received a total of five offers from a mix of our clients, outside brokers’ buyers, and exchange buyers. To give everyone an equal chance, the seller provided a multiple counter offer with the same price and terms. Since the seller planned to do a 1031 exchange, we advised including specific terms in the counter offer, such as two 30-day options to extend the close of escrow and making the 3%deposit nonrefundable and released to the seller’s 1031 exchange accommodator. These terms proved to be beneficial later in the exchange process.

Only one buyer accepted all nine points in the counter offer, and we opened escrow at $2,740,000 on March 15th. During the due diligence period, the buyer discovered minor issues with the building, leading to negotiations for a slight price reduction in exchange for removing all contingencies. Once the contingencies were removed, the deposit was released to the seller’s 1031 exchange company.

However, when it was time to close escrow, the seller had not found the right property to purchase, and they exercised their first escrow extension. Around the same time, interest rates skyrocketed, causing the buyer’s bank to inform them of a need to renegotiate the interest rate if the seller used the second extension. This would significantly impact the buyer’s net income. Although the seller had the right to extend for a second time, we recognized the importance of expediting the search for exchange properties. We explained to the seller that while the buyer’s loan issue wasn’t technically their problem, it was crucial to avoid an unhappy buyer who might consider walking away from their deposit due to worsening interest rates. We wanted to avoid a situation like the beginning of COVID when buyers walked away from nonrefundable deposits. Fortunately, we found two suitable properties for the seller to purchase in Ventura County, an area they favored due to its lack of LA rent control. The properties included a single-family house in Ojai, which they planned to rent out and build an accessory dwelling unit (ADU), and a three-unit property in Ventura City with strong value-add potential for rent increases and the addition of an ADU.

Ultimately, the seller was extremely pleased with the outcome. They received a great price for their renovated four-unit property and now possess two new value-add investments in non-rent-controlled cities, allowing them to grow their portfolio in the years to come. Similarly, the buyer was satisfied with their investment, appreciating the property’s ease of management and desirable location, which they believed would continue to appreciate in value for the foreseeable future.

Read More

This sale ranks fourth for a 4-unit apartment building in the 90036-zip code. The three higher sales were fully renovated properties in a better market with lower interest rates. Remarkably, we now account for two of the top five sales on this list, with our previous listing at 854 S Sycamore closing in 2022.

In June 2022, the seller contacted us after witnessing our successful sale of a similar 4-unit building at 854 S Sycamore. After 44 years of ownership, the seller sought our opinion on the property’s value. Strategically, the seller left units vacant through natural turnover, without resorting to cash-for-keys agreements or renovations. Once three of the four rent-controlled units became vacant, the decision to sell was made.

At the time of the seller’s contact, the market was beginning to change, with the Federal Reserve implementing a third consecutive rate hike. The seller expected close to $3 million for the property, considering their knowledge of the market and the value of the three vacant units. However, recent comparable sales were no longer directly comparable due to the rapidly changing interest rate environment. After thorough analysis, we advised listing the property at $2,895,000, with an expected sales range between $2.7 million and $2.8 million. The seller agreed, and the listing agreement was signed in early September 2022.

Following the listing agreement, we reached out to the half-dozen offers received for our similar listing at 854 S Sycamore, which had closed just three weeks prior. Unfortunately, all six buyers were either no longer interested or offered significantly lower values due to the rapidly changing market. Fortunately, leveraging our extensive database, we generated two solid offers from new buyers within one week of marketing.

Both buyers’ offers were almost identical in price but varied in terms. The seller chose to counteroffer only one of the buyers based on their larger portfolio of apartments in the surrounding area and our prior successful escrow closure with them.

The buyer accepted the seller’s counteroffer of $2.8 million, with a shortened 7-day due diligence period and a 60-day close of escrow. Escrow was opened on September 16th, just nine days after commencing the listing’s marketing.

During due diligence, the buyer discovered more deferred maintenance than anticipated and had concerns about potential lead-based paint issues during their planned renovation. Negotiations resulted in a discount from the seller, including a $50,000 price reduction and an additional credit towards the buyer’s closing costs, facilitating the closing of escrow.

Although this deal presented more stress than desired, we recognize the challenges posed by a changing market. Nonetheless, we are pleased to achieve a record sale price and navigate a problematic escrow successfully. The seller is highly satisfied, using half of the sale proceeds for a 1031 exchange into an investment house while enjoying retirement with the remaining funds. The buyer is content with their purchase, seamlessly fitting into their portfolio of over 10 apartment buildings in the nearby area.

Read More

Our relationship with the seller began many years ago in 2016 when we first started talking to him about his multiple apartment buildings. After many years of consistent communication, we were able to earn this seller’s trust resulting in being rewarded this listing to sell his Santa Monica property in early August 2022, nearly 7 years after our relationship began.

We hit the market on August 4th and were able to quickly expose the listing to thousands of investors and brokers within the first few days of marketing. Within a week, we were able to generate 3 signed offers from qualified buyers, one of which came from our buyer who was willing to open escrow without any contingencies at all, meaning his deposit would go hard (non-refundable) from day 1 of escrow.

The seller accepted the offer from the buyer who was willing to open escrow without any contingencies, and the buyer wired in his non-refundable deposit on August 15th to solidify the deal, just 11 days after we hit the market. Escrow went on without a hitch leading to our successful closing today, less than 70 days after we listed the property.

The seller is exchanging into single-tenant triple net properties, focusing on fast food restaurants with drive throughs that have at least 10 years remaining on the lease. The seller’s motivation was to get away from strict rent control laws in Santa Monica and exchange into a management-free property with higher cash flow. The buyer was a local investor who owns dozens of other apartment buildings and was looking to add to his portfolio of well located properties.

Top 3 Most Active Team in Santa Monica

With 12 apartment building closings in Santa Monica since 2019, we have earned a spot in the top 3 most active apartment agents in Santa Monica throughout all brokerages, and we are the #1 most active in Santa Monica at Marcus & Millichap (source: CoStar). In this time period, there are been about 225 total multifamily sales in Santa Monica, meaning we have over a 5% market share in the city.

Read More

Surprisingly, this was one of the most difficult deals we’ve ever had to sell, which we would have never guessed would be the case after the initial reaction from the marketplace. This property is located in one of the most sought after cities in all of LA county, Manhattan Beach, which has an extremely high barrier to entry with less than 2 apartment buildings selling per year on average.

When we hit the market in August 2022, and throughout the entire 6 month process from list to close, we were never short of interested buyers. In fact, we were able to gather an impressive 16 total offers during the life of the listing, but even with all of that interest, it was difficult to get a buyer to the finish line. There were definitely issues with the property itself which did not help (lots of deferred maintenance, small units, low rents, etc.), but in the past few years many buyers would have accepted those issues and still bought the deal. Now that the market is trending down, buyers have become much pickier than they used to be, causing a much higher percentage of cancelled escrows than we’ve ever seen.

After 4 months of marketing, and a few failed escrows, we were able to get a buyer to open escrow fully non-contingent from day 1. We opened escrow with this buyer in mid-December 2022, and the buyer’s initial deposit became immediately nonrefundable when escrow received it. Two months later, we were able to get escrow closed. The buyer was ready to close much sooner, but Chase Bank needed those two months to get the loan assumption approved and closed.

The buyer was a local investor who lives almost walking distance to the property. They own a handful of other apartments in Manhattan Beach so they are excited to add this to their growing portfolio. It’s a perfect value-add deal for them in a great location that will pay dividends over the years to come.

The sellers motivation was to escape management responsibilities because they are getting older and are tired of self-managing their apartments. They are now doing a 1031 exchange into the ever-popular option of single tenant triple net (NNN) properties. With this exchange, they will be able to get rid of all management responsibilities while increasing their net cash flow each month.

Read More