Just Closed | 7 Units in Chinatown | Opened Escrow Non-Contingent!

Closing Details:

Sale Price: $1,075,000

CAP Rate: 3.24%

GRM: 14.29

Year Built: 1971

Transaction Overview:

The Liberow Group of Marcus and Millichap is pleased to announce the sale of 714 W College Ave, a 7-unit building located in Chinatown. Our team has been in contact with this Seller and their family for many years and, when they determined now was the right time for the family to sell, they reached out to us due to our extensive track record in selling multifamily properties throughout Los Angeles.

After hitting the market in the middle of July, we deployed our strategic marketing plan, targeting nearly 10,000 investors via our “Just Listed” email blasts, website, social channels, and third-party marketing platforms. One of the key challenges for this particular assignment was the fact the income was incredibly low. Coming in at an in-place CAP rate of 3.47%, we knew we had our work cut out for us given the challenging macro-economic environment and looming regulation. Even so, our team was confident in our ability to deliver for our clients.

We directed our marketing efforts toward every principal, broker, and investor in our network, aiming to find an investor with a long-term horizon who wasn’t afraid of the low going-in CAP rate. Once those tenants vacated, a savvy buyer knows there is a tremendous amount to upside to be realized. After the property hit the market, we started fielding offers and qualifying those that were interested in the property. Through our marketing efforts, we were able to generate over 10 offers, with several of them being non-contingent. One buyer was very intrigued by the deal and, to secure the deal, submitted a non-contingent offer with a quick close just $25,000 below list price. Upon hearing that they didn’t have to do anything, and could proceed in the transaction with little further effort, our happy seller agreed to the terms set forth in the contract. Being that the deal was non-contingent, the transaction proceeded smoothly up until the closing today.

Despite the current challenging market conditions, our expertise ensured we achieved the best possible outcome for our seller and successfully closed the deal at the highest price with the best terms. We look forward to continuing to provide exceptional service and deliver outstanding results to all our clients.

Since 2013, The Liberow Group has been one of the most active teams in Los Angeles County. Collectively, we have closed 254 transactions across various product types resulting in over a BILLION dollars in career sales. If you are interested in getting a complimentary evaluation done on any of your properties, please let us know – we’d be happy to put one together for you!