The following case study describes our process selling our recently closed property at 200 Rosemont Avenue, Los Angeles, CA 90026.

Deal Story

Our team cultivated the relationship with the owner in 2018 when we discussed the owner’s rents and the city-wide systematic code enforcement program. In June of 2022, the owner reached out and requested a broker’s opinion of value. The owner explained the inability to increase rents since March 2020 and the direction of future Los Angeles rental housing were the tipping points that led to the decision to desire a 1031 exchange into an asset more landlord friendly. The owner ultimately awarded us the listing – having mentioned afterwards that we competed with multiple reputable brokerage firms and that our track record, transparency, and tenacity ultimately won us the business over our competitors.

Since one unit was going to be delivered vacant at the close of escrow, we tailored a marketing strategy to conduct tours for prospective buyers prior to submitting offers. We were able to tour 10 buyers and procure 8 offers from these tours and the seller ultimately selected an offer that was 5% more than the next highest offer. During the inspection period, another unit became vacant at which point the building was now 33% vacant. While this may have seemed like the perfect scenario for any buyer, banks were unwilling to provide competitive, conventional financing due to the vacancy rate. The buyer did not want to source a private lender to close the deal; and as a result, cancelled escrow. We immediately reached out to the back-up offers that originally toured the vacant unit in the attempt to engage the buyers again.

We toured the prospective buyers through the additional vacant unit (2 out of 6 vacant now) and a buyer stepped up by opening escrow completely non-contingent and closing escrow quickly. The buyer opened escrow at a price that was relatively close to what the first buyer opened escrow only a couple weeks prior. In addition, the buyer was willing to close escrow within a short period and take care of the government 9A work after the close of escrow.

In the end, the apartment sold less than 40 days after the offer was originally accepted. In addition, the seller identified and opened escrow on the 1031 exchange property prior to the downleg closing escrow. The 1031 exchange property is in a more landlord friendly area and newer construction which were the key factors that attracted the seller to this asset.

Find out how we can help you sell you commercial real estate property. Call KingSide today.