The following case study describes our process selling our recently closed property at 559 Sunset Avenue, Los Angeles, CA 90291.
The owners of the 14-unit building on 559 Sunset in Venice Beach reached out to us in November 2022 about potentially selling the building for them. We had sold the building to them only four months prior (July 2022) and the Federal Reserve had increased rates a couple times since the initial acquisition. In addition, Measure ULA had just been voted on and passed which would have required a substantial tax on the sale if it closed escrow after March 31st, 2023.
Upon signing the exclusive listing agreement, we sent out an email blast to our database of buyers, brokers, and investors as well as put it on the market. Due the size of the asset and its unbeatable location, the initial reaction was positive. While we did receive some pushback from buyers about trying to sell the building for $1million more than what the sellers purchased it three months prior, we were able to source a couple of qualified buyers who submitted competitive offers.
We toured the building and decided to move forward with one of the buyers who owns multiple assets within walking distance to 559 Sunset. After a 60-day escrow, we were able to sell the property for $5,825,000, and more importantly, prior to Measure ULA going into effect. Had the property closed escrow after March 31st, 2023, the seller would have had to pay $233,000 to the City due to new ballot.
The sellers were able to successfully identify a 1031 exchange property immediately thereafter and the new owner was able to add another property to the portfolio within close proximity to other buildings the buyer already owns.
It is important to partner with a team of experienced agents – especially in this market. We have closed in excess of 100 apartment units since the start of January 2023 thanks to our loyal clients.
Give us a call so that we can replicate similar results for you!
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700 S. Flower Street, Los Angeles, CA 90017
