The following case study describes our process selling our recently closed property at 3336 Andrita Street, Los Angeles, CA 90065.

The Problem

KingSide Investment Group of Keller Williams Downtown Los Angeles was selected to exclusively list the multifamily property on 3336 Andrita Street in Glassell Park. Within the first week of marketing the property, we were able to procure nine (9) offers and ultimately open escrow at the asking price.

On the day of the buyer’s inspection, 3 out of 5 tenants notified us that we would not be allowed to enter their unit unless it was the owner, and the tenants required we demonstrate a negative Covid-19 test result within the last 24 hours. As you can imagine, the buyer was discouraged to buy the building and much to our dismay, he decided to cancel escrow.

While the owners could have pursued an eviction for the tenants that impeded the sale of the property, the owners believed their trial date would have taken months to resolve because of the delays caused by Covid-19..

The Solution

With the buyer’s consent, we shared the inspection report to the other buyers that had submitted offers during the marketing process. In addition, we were able to convince the tenants to take pictures of their units.

Unfortunately, a couple of the units that we were unable to access did not show well. There was an active leak from one of the units that was causing the other unit to leak as well. There was also exposed wiring in one of the units that would need to be remediated immediately. To say the least, there was a decent amount of deferred maintenance at the Andrita building.

After explaining the situation to the other buyers (access to 2/5 units, active leaks, deferred maintenance), most of the buyers were either disinterested or requested a significant price reduction from the asking price. While this could have discouraged most real estate teams, we went back to the drawing board and sourced a needle-in-the-haystack buyer from out-of-state. We provided all relevant material to this buyer and disclosed the information prior to opening escrow.

Ultimately, we were able to get the buyer comfortable with the situation and open escrow completely non-contingent.

Find out how we can help you sell you commercial real estate property. Call KingSide today.