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Case Studies

CHALLENGE
Located in the heart of LA’s hip Koreatown neighborhood, 848 South Mariposa Ave. represented a unique opportunity to sell an existing rent-controlled apartment building with current rents 40% under market that presented an excellent development opportunity to build approximately 22 units on the R4-2 zoned, 8,794-square-foot site. The proximity to the heart of Koreatown was a huge draw for potential investors and developers.
 

ACTION
Both the location and the zoning – one of the highest density residential zoning designations in Los Angeles – positioned this property as a prime development opportunity that would be worth more to a developer than a traditional apartment investor. We took a very pro-active approach, targeting developers with our primary marketing efforts. Our marketing approach focused on every developer in our multifamily database that had recently acquired smaller land sites for development in Koreatown, but also included our database of value-add investors to broaden the pool of potential buyers and maximize our client’s return potential on the sale. Through our targeted approach, we were able to generate multiple offers from both developers and value-add investors within the first week of marketing the property.

RESULTS
Our experience with the development process as former principals for a major development company in Santa Monica, coupled with our local market expertise, enabled us to communicate clearly with potential developers and sell the property at 100% of the listing price, which was a higher price than what would have been achieved if the property had only been marketed as an existing apartment building investment.
 

848 S. Mariposa Avenue
Koreatown
467 S. Bonnie Brae Street
Westlake

CHALLENGE
467 South Bonnie Brae Street presented a rare opportunity to sell a value-add, non-rent controlled apartment building in Westlake/MacArthur Park (Los Angeles, CA) with current rents that were 35% below market. Built in 1991, the building had an excellent unit mix, but was in need of physical upgrades. The current owners were not able to capitalize on the building’s potential, but the location (near LA’s Central Business District) and nearby walkable retail shopping amenities presented a huge draw for potential investors looking for a value-add opportunity in an up-and-coming market.

ACTION
Our pro-active approach to marketing the property included listing it on all of the major internet databases, along with a massive internal and external email campaign. Most importantly, we reached out to every buyer directly that purchased a non-rent controlled property in the last two years within a two-mile radius with similar return metrics and made over 60 direct calls on the property to both principals and brokers. By targeting our approach to buyers with experience in executing value-add strategies, were able to generate multiple offers within 72 hours of marketing the property.

RESULTS
Through our tenacity in reaching out to our vast network of principals and brokers, we had the property in escrow within 10 days of putting it on the market and set a record price per unit for the immediate neighborhood.

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1127 18th Street
Santa Monica

CHALLENGE
1127 18th Street represented a unique opportunity to sell a value-add rent controlled apartment building in Santa Monica, CA with a great deal of deferred maintenance for a turn-key price. Built in 1959, the building had a superior unit mix, but in-place rents averaged 50% under market value. The proximity to Silicon Beach, 3rd Street Promenade, Montana Avenue and Wilshire Boulevard was a huge draw for potential investors.

ACTION
We took a very pro-active approach to marketing the property. We immediately put the property out on all of the major databases, along with a massive internal and external email campaign but most importantly, we reached out to every buyer directly that purchased a property in the last two years within a two-mile radius with similar return metrics and made over 100 calls on the property to both principals and brokers. Through this pro-active approach, we were able to generate multiple offers within the first week of marketing the property putting our sellers in the driver’s seat when it came to buyer selection.

RESULTS
Through our industry insights, market knowledge and tenacity in reaching out to our networks of principals, buyers and brokers, we were able to procure a buyer through our brokerage network that was within 98% of the listing price.

1820 S. Bundy Drive
West Los Angeles

CHALLENGE
1820 S Bundy Drive represented an opportunity to sell a 9-unit value-add rent controlled apartment building in West Los Angeles, California. The property, built in 1965, was approximately 40% under market rent and located on a very busy street. The proximity to Santa Monica, Westwood, Century City and other major employment hubs attracted numerous investors.

ACTION
We reached out to every buyer directly that purchased a property in the last two years within a two-mile radius with similar return metrics and made over 150 calls on the property to both principals and brokers. In addition, we immediately put the property out on all of the major databases, along with a massive internal and external email campaign but most importantly, we were able to generate multiple offers within a week of having the property on the market.

RESULTS
We were able to procure a buyer through our brokerage network that came through with the best price and terms for the seller.