SUCCESS STORY
$5.575M Glendale Sale at 4.83% CAP & 13.93 GRM
719 Orange Grove Avenue
1 month into the listing, we identified an exchange buyer who closed escrow in 90 days at 99% of the listed price.
Price
$
5,575,000
City
Glendale
Current Cap Rate
4.83
%
Price P/ Unit
$
398,214
Lot Size
13,499
SF
719 orange grove
About the Property
719 Orange Grove is a courtyard-style complex located 0.7 miles from The Americana and features a majority of 2-bdrm. and 2 bath units. Built in 1988, the property features an enticing unit mix of (12) 2-bdrm. and 2-bath units, (2) 1-bdrm. units, and a non-conforming studio unit. Most units feature wood-laminate flooring, stainless-steel appliances, central air conditioning, and private balconies. Please note that the City of Glendale currently allows an 8.8% annual rental increase (5% + CPI).
Price
$
5,575,000
City
Glendale
Current Cap Rate
4.83
%
Price P/ Unit
$
398,214
Lot Size
13,499
SF
Background
719 Orange Grove, a courtyard-style complex located 0.7 miles from The Americana, featured a majority of 2-bdrm. and 2 bath units. The property was near a vibrant downtown district home to several large shopping complexes, independent retailers, cafes, and restaurants along Brand Boulevard. The owner was a long-term client of Kenny's, who wanted to diversify out of some of his California real estate holdings.
Result
1 month into the listing, we identified an exchange buyer who closed escrow in 90 days at $5,575,000. This sale was a PHENOMENAL win for our buyer because:
He was able to execute a 1031 exchange, selling an out-of-area portfolio, and trading into a single property much closer to home.
He will be increasing cash flow by streamlining operations and reducing expenses.
Also, this sale was a PHENOMENAL win for our Seller on multiple fronts:
He's unburdened by upcoming legislative risks involved with CA ownership (SB-33 - Justice for Renters - click for more info).
He will increase AND stabilize his cash flow by exchanging into an institutional-grade investment product outside of CA.
He will be free from the stress of property management headaches.
His capital gains taxes will be deferred
