Matthews™ Completes $6,525,000 Sale of Central L.A. Apartment Building

Los Angeles, CA – Matthews Real Estate Investment Services™, a commercial real estate investment services and technology firm, brokered the sale of a 32-unit apartment building, located at 211 South Avenue 57, Los Angeles, CA. Senior Associate Taylor Avakian and Vice President J.A. Charles Wright represented both the buyer and seller in the transaction.

 

The seller was looking to exchange out of the California multifamily property into an out-of-state NNN asset to increase their passive cash flow. Matthews’ agents found two NNN buildings to successfully complete their 1031 Exchange.

 

“Cap rate compression has occurred across California due to the premium on land and rent. Our client was looking for passive cash flow, which resulted in buying a secure asset out of state,” Avakian said. “They are exchanging into a bank and a drugstore, two-property types with strong corporate guarantees that fit their investment criteria.”

 

The buyer, a local investor, was interested in the building because of its proximity to local hotspots and the ongoing in-migration of younger generations into the area. This investment was a prime value-add opportunity for the buyer as it allowed for upgrades resulting in rent increases and a higher net operating income (NOI).

 

“Los Angeles’ biggest challenge in multifamily is adding value to properties,” Wright said. “This made it essential to source an experienced, qualified buyer that understood the market and could perform well to make the investment profitable.”

 

For more information on this listing or to contact Taylor Avakian and J.A. Charles Wright, please visit www.matthews.com.

 

About Matthews™

Matthews Real Estate Investment Services™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Founded in El Segundo, CA, and strategically positioned with over 400 agents and support staff in over 13 offices across the United States, Matthews™ continues to focus on expansion into new markets. For more information, please visit www.matthews.com.