Built in 2019, the sellers had spared no expenses constructing a luxurious 11-unit building in this rapidly developing Silver Lake neighborhood. Despite having intentions to retain the property, one of the investors had a change of heart and the decision was made to cash out.
About The Property
Stats
Price $7,865,000
Year Built 2019
Units 11
Current CAP 4.52%
Price p/ Sq. ft. $706
Price P/ Unit $715,000
Background
Challenge
With the sellers having limited flexibility on price, Kenny and Max were looking for a “needle in a haystack” buyer who would appreciate the quality of construction and strong in-place tenant profiles.
Solution
Kenny and Max emphasized in-person tours to highlight the quality of the asset, compared to other new construction buildings on the market. In total, they toured more than 30 different buyers over 4 months of marketing.
Result
Contingencies were removed in mid-March, as the country braced for the apex of the COVID-19 pandemic, and escrow closed in June. The sellers were thrilled and relieved that Kenny and Max were able to close the deal at 99% of the listed price in the middle of a global pandemic. Meanwhile, having seen the stock market drop in 30 days, the buyer was relieved to acquire a safe asset to weather the economic uncertainty. Rent collections were 100% in April, May and June.
