Maximizing value: Just in time sale of a prime apartment complex in west los angeles
Solution driven sale in WEST LA
Located in the Westside of Los Angeles, in the Culver City adjacent neighborhood of Mar Vista, a sale was completed by real estate apartment broker team of Kevin Kawaoka,Bluechip Investment Group @ NAI Capital.
This case study delves into the sale of a 31-unit apartment complex, revealing the deal specific challenges encountered and the strategic solutions implemented to ensure another successful transaction.
PROPERTY OVERVIEW
Key Details
Location: 4225 Inglewood Boulevard Mar Vista, CA 90066. West Los Angeles, Culver City Adjacent. 2.5 Miles to downtown Culver City. 2.5 Miles to Abbot Kinney Blvd. 2 Miles to Playa Vista.
Sale Price: $15,875,000
Price Per Unit: $512,097
Price Per Square Foot: $442
Building Details: 3-story, 31-unit apartment complex
Building Square Footage: 35,851 sq feet
Lot Size: 23,361 sq feet
Zoning: LAR3
PARTIES INVOLVED
Seller: Barthell Family Trust
Buyer: Coral Vista, LLC
Lead Apartment Broker: Kevin Kawaoka, Bluechip Investment Group @ NAI Capital Commercial
CHALLENGES AND SOLUTIONS
TIGHT TIMELINE | BEATING OUT ULA
The seller's goal was to sell the apartment complex ahead of the city’s “Mansion Tax”, which went into effect April 1, 2023. We signed the listing agreement during peak Holiday Season at the end of December 2022. We had to remain relentless in our marketing and stayed persistent and diligent in pursuit of our goal.
OWNERSHIP NEEDS
Ownership made it clear that retaining their office space for at least a year at the property was important to them. This would give them time to relocate and transition out.
BANKING CRISIS
The Silicon Valley Banking Crisis struck during the transaction which prompted many principals to shift their funds while many accounts got frozen thus preventing deals from closing.
SUMMARY
Our team was able to execute the transaction and save the seller $873,000 in taxes on the sale! We ultimately attracted the right buyer with the right profile for this asset and executed our plan. The buyer came in with an all-cash offer and closed early. We were able to navigate our clients through the banking crisis, keep the deal secured and on schedule while having the property trade at 99.5% of the listing price.
Post-closing the seller was also able to identify a 1031 exchange upleg property, outside of Los Angeles, within the first week. The new buyer plans to reposition the property and hold it as a long-term investment. With the increasing demand for quality rental housing in Mar Vista, the new owner is confident that the property will generate strong returns for years to come.
4225 Inglewood Boulevard | Coral Tree Apartments
Received the Los Angeles Business Journal 2024 Commercial Real Estate Award | Bronze Award for Best Multi-family Sale Deal
Discover more about our team and successes at Bluechip Investment Group Team and NAI Capital.
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