The following case study describes our process selling our recently closed property at 935 S. Mariposa Avenue, Los Angeles, CA 90006.

Deal Story

In June 2021, we were representing a client on the purchase of an apartment building in East Hollywood at a price of $4,700,000. After completing inspections, our client noted deferred maintenance in the structure and was now at a price of $4,550,000.

Unfortunately, the seller did not want to budge on price and now wanted to close escrow in a shorter period of time than what was agreed upon. Because we could not come to an agreement on price and terms, the sellers cancelled escrow and our buyer received his earnest money deposit back.

Fast forward to August 2022 and the apartment building in East Hollywood ended up selling for $4,300,000 to a different buyer for $250,000 less than what our buyer would have closed escrow at.

Even though the transaction in East Hollywood could have left a bad taste in our mouth, we shrugged it off and continued to nurture the relationship. This same seller decided to sell a 26-unit apartment building in Koreatown in 2023 and we felt we had the best buyer for this deal. We felt there was a little more motivation on the seller’s end to meet the market this time around – the seismic retrofit had not been completed, the seller would have had pay some of his proceeds towards Measure ULA, and there was an illness in the family.

With that being said, we submitted an offer for our buyer, and it was accepted. The main selling point behind this deal was that ten (10) out of twenty-six (26) units were going to be delivered vacant at the close of escrow. In addition, there was an opportunity to add accessory dwelling units if the buyer chose to not complete the tuck-under seismic retrofit work.

Unfortunately, the buyer found that the Koreatown building did not show well and asked for a price reduction. We received pushback AGAIN from the seller and he even threatened to cancel the escrow.

While all parties could have gotten bent out of shape, we stayed calm and collective. We explained to the seller that all other buyers would notice the same deferred maintenance. In addition, we reminded the seller that we could have netted him more dollars on the sale of his East Hollywood building if he had moved forward with our buyer and did not want him to make the same mistake again, but with a different buyer.  

In the end, we were able to negotiate a $150,000 price reduction for our client and close escrow shortly thereafter. This deal is a testament to our extensive knowledge of the market – buyers/sellers in the market – and our ability to identify opportunities for our clients.

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