We take great pleasure in having represented our client on the purchase of an 18-unit multifamily on 1929 Arlington Avenue. The property is located in the Arlington Heights neighborhood of Los Angeles.  

The property was originally purchased in 2020 by a group of investors for $3,695,000. It was financed with variable-rate debt and over the subsequent years, the owners invested heavily in capital improvements such as a new roof and seismic retrofitting. Unfortunately, due to the Covid-19 rent freeze, the owners were unable to raise rents. When interest rates spiked, the mismatch between rising debt service and stagnant income turned the deal into a financial squeeze.

The owners decided to list the property for sale in August 2024 for $3,995,000. It received interest during the marketing period, but the sellers were unable to come to an agreement on price with a buyer. Ten (10) months after the property was listed, we stepped in with a clean offer at $2,850,000 with a short contingency period and 21-day close of escrow. 

During the inspection period, we uncovered that the SB721 retrofit recommendations had not been completed. In addition, the building was equipped with outdated Stab-Lok electrical panels. We were able to negotiate quite sizable credit for our client (buyer) and the deal moved forward without delay. 

Now is a good time to review your position and start planning your next move. Please feel free to reach out to us. 

‍