A LA Multifamily success story in Los Angeles
$504 per Foot & 5.5% CAP Turnkey Sale in Echo Park
1926 Santa Ynez St.
The property's minority partner had a succesul experience with KST in the past, and referred us to his general partner to get the job done.
Offering Price
$2,330,000
City
Los Angeles
Current CAP
5.51
Price per unit
$388,333
Lot Size
N/A SF
1926 Santa Ynez
Offering Price
$2,330,000
Number of Units
6 Units
Bldg. Size
4,621 SF
Price per Foot
$504
Year Built
1927
Market CAP
N/A
Zoning
N/A
Background
1926 Santa Ynez was a 6-unit Spanish-style property located two blocks west of Echo Park Lake and two blocks south of Sunset Blvd. This largely-renovated turnkey property was located within walking distance of a revitalized urban oasis serving as a neighborhood hub, and a wide array of popular retailers, cafes, and restaurants along Sunset Blvd. Four of these units were extensively renovated and blend Spanish charm with luxurious amenities that appeal to high-income young professionals and families.
With most units renovated and interest rates rising, ownership felt it was time to move on to the next project. The property's minority partner had a successful experience with KST in the past, and referred us to his general partner to get the job done.
Result
Challenges emerged, particularly concerning the four renovated yet VACANT units at the start of the listing. Many potential investors had doubts regarding the achievability of projected rents. In addition, we offered the property at a 5.33% CAP, while interest rates were at 6.5%. This dramatically shrunk the buyer pool because investors could not justify putting fresh equity and new debt into the deal.
With few exchange buyers in the market, we increased the property’s visibility. This heightened exposure, paved the way for multiple offers, and identified an outside agent representing an exchange buyer. Having recently relocated to LA, the client sold an out-of-state property and sought an income property in close proximity. Ultimately, escrow closed 90 days after we received the listing at 95% of the listed price.
