About The Property

1926 Santa Ynez is 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 is 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 are extensively renovated and blend Spanish charm with luxurious amenities that appeal to high-income young professionals and families.

Stats

Price $2,330,000

Year Built 1927

City Echo Park

Current CAP 5.51%

Price p/ Sq. ft. $504

Price P/ Unit $388,333

Exterior photo of 1926 Santa Ynez

Background

1926 Santa Ynez was a turnkey Spanish-style property in the heart of Echo Park. The property featured extensively renovated units with modern amenities and high-end finishes that appealed to high-income young professionals. 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 (929 Idaho), and referred us to his general partner to get the job done.

Challenge

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. We knew we had to find an exchange buyer looking for “mailbox money” without management headaches.

Result

With few exchange buyers in the market, we increased the property’s visibility. In addition to traditional platforms, digital ads generated 50,000 views and 3,000 property website visits. 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.

Speaking for myself and everyone involved, you were absolutely the best broker we could have selected to market our portfolio. You found an incredible buyer and were able to guide us through so many challenges, including a global pandemic, and secured us a price beyond our expectations.

- Seller (60 Units by The Grove)

“I cannot say enough great things about KST. They take care of you, they have the connections needed, and they get the job done! We were amazed at how quickly our sale went through during the COVID pandemic.”

- Seller (4 Units in Beverly Grove)

“It was truly a pleasure working with Kenny. He is professional, honest, hardworking and most importantly did what he said he would. Kenny sold the property at list price in less than 60 days from start to finish.”

- Seller (Beachfront Generational Asset in Playa del Rey)