16-Unit Value Add Multifamily Property Sells to an All Cash 1031 Exchange Buyer
The Area – Carthay Square, Los Angeles
- Fairfax has long been synonymous with LA’s cultural heartbeat — connecting West Adams to Mid-City to West Hollywood, lined with classic Art Deco buildings, mom-and-pop eateries, and some of the city’s most recognizable creative landmarks.
- Owning multifamily real estate on Fairfax means being part of a neighborhood with history, personality, and enduring demand from tenants who want to be at the center of it all.
The Landscape for LA Rent Controlled Apartments
- In today’s market, selling value-add rent-controlled apartments takes more than just pricing and patience — it takes a thoughtful strategy.
- With interest rates higher and operational costs climbing, buyers are becoming more selective, particularly when it comes to R.S.O. (Rent Stabilization Ordinance) assets that require significant capital improvements and expenditures.
- Today’s Buyers are less willing to roll the dice on achieving 30% upside on value-add acquisitions with low rents. Many investors are underwriting more conservatively – seeking positive leverage and cash flow Day 1.
The Marketing and Sale Process
- Despite the challenging environment, our team generated five competitive offers through a targeted marketing campaign emphasizing the property’s location, character, and upside potential.
- By leveraging our extensive investor network and local expertise, we were able to create real momentum around the listing — ultimately leading to a successful all-cash closing with a 1031 exchange buyer who recognized the long-term value of the asset.
The Final Transaction Metrics
Below are the final deal metrics for 1118 S. Fairfax Avenue. Los Angeles, CA 90019:
- $3,060,000 Final Sale Price
- $191,000 per Unit
- $234 per SF
- 10x GRM
- All-Cash 1031 Exchange Purchaser
- Non-Contingent Transaction
- 21 Day Total Escrow Period
