Category: Los Angeles Multifamily

A well-located 7-Unit property in Mar Vista sells to new entrant to the LA multifamily market.

Just successfully closed our listing located at 12400 Mitchell Avenue – a 7-unit multifamily property located in the heart of Mar Vista which is one of West Los Angeles’s most desirable and supply-constrained rental submarkets.

This sale marks the end of long-term family ownership, underscoring the continued generational transition we are seeing across these types of properties. The property was brought to market through a competitive marketing campaign that generated multiple qualified offers from a wide range of investors.

The Listing and Sale Process

• Our marketing strategy focused on exposing the property to a broad buyer pool, and we attracted interest from a wide variety of purchaser types – including legacy family owners, local operators, and 1031 exchange Buyers. The combination of strong fundamentals, excellent Westside location, and overall basis allowed us to generate tremendous interest in the listing.

• Ultimately, the property was acquired by a new entrant to the Los Angeles multifamily market, demonstrating that investor appetite remains strong for well-located assets with tangible value-add opportunities.

Submarket Insight | Mar Vista

• Despite a higher-rate environment, Westside submarkets like Mar Vista continue to outperform due to their low vacancy rates, affluent tenant base, limited new supply and proximity to neighboring areas like West LA and Venice. Investors remain active in pursuing smaller assets with long-term upside potential — particularly those offering the ability to reset rents through natural turnover.

Final Sale Metrics

• Final Sale Price: $1,700,000
• Price per Unit: $242,000/Unit
• Price per SF: $337/SF
• GRM: 11.4x
• Cap Rate: 5.1%
• 6 Offers Generated through the listing process

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

12-Unit Apartment Building Sells to one of LA’s most active purchasers.

We are pleased to announce the successful closing of 1256 N. Kingsley Drive, a multifamily property located in the heart of East Hollywood — an increasingly dynamic pocket of Los Angeles that continues to attract both investors and residents seeking strong fundamentals and urban convenience.

Well-Located in East Hollywood

This transaction highlights the continued demand for well-located assets even amid higher interest rates and a selective capital environment. Our team represented the seller, a long-term owner looking to capitalize on record embedded value, and navigated a competitive marketing process that drew multiple qualified offers.

ADU Potential with the use of SB 1211

The property attracted attention for its ADU and redevelopment potential, walkable location, and upside in rents while maintaining a stable tenant base. Despite shifting market conditions, our marketing strategy emphasized storytelling and local investor reach, generating consistent activity throughout the campaign.

Submarket Insight

East Hollywood remains one of L.A.’s most resilient submarkets, benefiting from steady renter demand driven by proximity to healthcare, entertainment, and education corridors and modest rent levels compared to adjacent neighborhoods like Los Feliz and Silver Lake.

We are seeing increasing investor interest in mid-size assets offering long-term repositioning potential. Even as construction slows citywide, existing rent-stabilized buildings in emerging neighborhoods like East Hollywood continue to trade actively – a sign that operators are adjusting to new pricing realities while positioning for future appreciation.

Roger Vincent of the LA Times points out the main reasons LA Apartment developers are on the sidelines in his piece published on 10/1/2025.

LA Apartment Construction Has Plummeted

• Apartment development in Los Angeles has fallen nearly 30% in three years, with fewer than 19,000 units under construction — the lowest level in over a decade (per CoStar).
  
  
• Developers say projects no longer pencil out, requiring $4,000–$5,000 monthly rents just to break even.

Developers and Investors Pull Back

• Even with strong rental demand and low vacancy rates, many developers have stopped buying or breaking ground.
  
  
• Institutional investors (pension funds, insurers, etc.) are redirecting capital to other cities, citing unpredictable rules and shrinking profit margins.

Policy, Costs, and Regulation to Blame

• Builders cite Measure ULA (transfer tax), COVID-era eviction limits, and fears of new policies as major deterrents.
  
  
• A proposed $32.35/hour construction minimum wage plus a $7.65/hour healthcare credit could further inflate costs.
  
  
• Material prices have surged due to tariffs (iron +9%, copper +14%) and labor shortages worsened by immigration crackdowns — a critical blow since 61% of California construction workers are immigrants (26% undocumented).

Long-Term Decline in Housing Production

• Annual housing creation has fallen for decades — from 70,000+ units in the 1950s to under 15,000 in the 2010s — leaving the region with an aging, unaffordable housing stock.
  
  
• Over the past six years, 152,000 units were built in L.A. County, but only 10% were affordable to low-income households.
  
  
• Building permits in the L.A.–Long Beach–Anaheim metro are down 68% from 2020 — the second-steepest decline in the nation (after San Jose).

Consequences for Renters

• With construction uneconomical, supply will tighten, rents will rise, and workers will move farther out, lengthening commutes.
  
  
• Los Angeles faces a deepening housing shortage as high costs, policy uncertainty, and investor flight make new apartment construction financially unworkable — even amid overwhelming demand for rental housing.

We are pleased to announce the successful sale of 1320 S. Carmelina Avenue, a well-located multifamily asset in the heart of the West Los Angeles submarket.

Favorable Metrics: All things considered, solid metrics were achieved for the Seller given today’s market dynamics. We were able to consummate the transaction at a 13.7x Gross Rent Multiplier (GRM) and a 4.0% capitalization rate – metrics which reflect the property’s desirable location and stability in a market characterized by volatile interest rates and tighter lending conditions.

Blue Chip West LA Location: Situated just south of Wilshire Boulevard and west of Bundy Drive, the property benefits from proximity to major employment centers, transit, shopping, and some of the Westside’s most attractive neighborhoods. West LA continues to command premium investor interest, and this sale underscores the confidence in the submarket’s long-term fundamentals.

Purchased for Long Term Appreciation: The Buyer—a private investor—was primarily focused on capital preservation and long-term appreciation, recognizing the enduring value of core Westside real estate. With limited supply, strong renter demand, this acquisition was a strategic move to anchor capital in a blue-chip location.

The Outcome: In today’s uncertain market, where many investors remain on the sidelines, this closing stands out as a compelling example of how well-located, income-producing real estate continues to trade when appropriately priced and professionally marketed.

The Final Deal Metrics

Below are the final deal metrics for 1320 S. Carmelina Avenue. Los Angeles, CA 90025:

• $2,650,000 Sale Price
• 9 Units
• $294,444 price per unit
• $385 per SF
• 13.7 GRM
• 4.0% cap rate

We’re pleased to announce the successful closing of 3636 Keystone Avenue, a 10-unit multifamily property located in the highly desirable Palms neighborhood of Los Angeles. This marks the first of four transactions in a broader portfolio sale on behalf of a long-time private investor who has chosen to exit the Los Angeles market entirely.

Regulatory Fatigue Persists in LA Multifamily: The Seller, a long-term generational holder, cited regulatory fatigue as one of the key drivers in their decision to divest. Amid a growing patchwork of local and state mandates — from rent control expansions to seismic retrofit ordinances — managing multifamily real estate in Los Angeles has become increasingly burdensome. With the regulatory environment only trending more complex, the Seller made a strategic decision to unwind their portfolio and reallocate capital.

Navigating a Challenged Private Capital Market: This transaction took place against a backdrop of volatility in the private capital markets. Elevated interest rates continue to squeeze returns and challenge buyer underwriting. Adding to the turbulence was the renewed trade friction caused by the impact of tarrifs, which sent ripples through the U.S. Treasury market — creating uncertainty around cost of capital and further complicating deal dynamics.

Multiple Offers Generated: Despite these headwinds, we were able to generate multiple offers by highlighting the asset’s core location, steady income, and long-term upside potential. The eventual buyer — a newer entrant into the Los Angeles multifamily market — saw 3636 Keystone as a prime opportunity to plant a flag in one of the city’s most dynamic and resilient rental submarkets.

Looking Ahead: With three additional properties from the same portfolio currently in process, our team remains focused on delivering execution amid a complex market. Whether you are looking to expand your holdings, exit strategically, or simply understand how to navigate today’s market dynamics, we’re here to help you get there.

The Final Deal Metrics

Below are the final deal metrics for 3636 Keystone Avenue. Los Angeles, CA 90034:

• $3,028,000 Sale Price
• 10 Units
• $302,800 price per unit
• $344 per SF
• 11.0 GRM
• 5.7% cap rate

1920’s 8-Unit Apartment Building Sells to Local Developer

We recently sold 1400 S. Wilton Place which was a classic value-add apartment building located in Arlington Heights near the intersection of Pico and Arlington.

Changing Market Dynamics: This sale is an illustrative example of the changing market dynamics of The LA Multifamily market within the past 2-3 years. We first listed this property in 2021 when the cost of borrowing significantly lower than current conditions. During that time, we generated 9 offers with a few at asking price. The Sellers ultimately did not transact for personal reasons. Flash forward to 2024 where we were in the thick of an elevated interest rate environment and there were significantly fewer buyers in the market.

The Heightened Regulatory Environment: LA is arguably the most regulated rental market in the country for landlords and much of the Seller’s motivation had to do with the heightened and continuous regulatory measures pertaining to LA rent controlled apartment buildings.

The Basis Buy: The purchaser, who owns and operates apartment buildings throughout Los Angeles, was most interested in the low Price per Square Foot basis of $180/SF which is ~20% less than other similar multifamily properties trading in the area.

The Final Deal Metrics

Below are the final deal metrics for 1400 S. Wilton Place:

• $1,915,000 Sale Price
• 8 Units
• $239,375 price per unit
• $180 per SF
• 11.0 GRM
• 5.3% cap rate

We are currently evaluating similar Los Angeles individual properties and portfolios for local owners. If you would like more information on how we may assist, please reach out to me at ewong@greysteel.com

1237 Amherst Avenue sells to a local apartment investor in an All Cash Transaction.

Through a challenging market with sales volume down from the highs of 2021/2022, as well as pending ballot measures (Proposition 33) hanging in the balance, we were able to close a “Bread-and-Butter” apartment transaction located at 1237 Amherst Avenue in prime West Los Angeles.

General Feedback From the Market

The general feedback from the diverse pool of prospective purchasers was typical for a West LA transaction such as this one, highlighted in few bullet points below:

• “Love the Location”: Some investors chase yield at the expense of location – while other investors chase location at the expense of yield. 1237 Amherst is an example of the latter – situated on a quiet side street near the iconic intersection of Wilshire Blvd and Bundy Drive in prime West Los Angeles. This is arguably one of the most well-established and highly sought-after rental submarkets for young ‘Westside’ professionals.
  
  
• “Excellent Rents, But Where is the Upside?”: The property was performing well with an average rent of ~$2,500/month. The near-stabilized rents achieved by the Seller ruled out the traditional ‘value-add’ investors who generally seek properties with lower rents and higher upside. 1237 Amherst was geared more towards an investor seeking a cash-flowing asset in an A+ location, who for the most part would be parking money for appreciation over the long term.
  
  
• “Let’s See What Happens with Prop 33”: Over the past few months, many investors remained on the sidelines anxiously awaiting the results of Prop 33 which could have introduced the concept of Vacancy Control (ie the government regulating rents in-between tenancies). We were able to successfully consummate this transaction while the fate of Prop 33 lingered in the balance. Prop 33 has since been defeated by California voters.
  
  

Healthy Buyer Interest with Multiple Offers Generated

Through the marketing process, we attracted attention from some of the most active buyers in the West LA market – both large and small.

• All Cash Transaction | 20 day Total Escrow: With the uneasiness of the capital markets still pervasive, the purchaser closed all cash with a lightening fast 20 day total Escrow period from start to finish.
  
  
• The terminal buyer was a smaller operator who owned a few apartment buildings in the immediate vicinity.

The Final Deal Metrics

Below are the final deal metrics for 1237 Amherst Avenue:

• $3,426,000 Sale Price
• 9 Units
• $380,667 price per unit
• $492 per SF
• 12.8 GRM
• 4.7% cap rate

We are currently evaluating similar Los Angeles individual properties and portfolios for local owners. If you would like more information on how we may assist, please reach out to me at ewong@greysteel.com

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