Challenge

14153 Victory Blvd is a rare, completely renovated 32-unit property, constructed before 1978 and subject to Los Angeles City rent control. The seller, a family partnership, renovated 24 of the 32 units and leased them at market rent around the same time. After remodeling the property, the seller was looking to reinvest funds into another project.

Strategy

Matthews™ targeted exchange buyers and investors looking to place funds into an asset generating stabilized income in a high-density rental market. Additionally, the remaining eight units that had yet to be remodeled allowed for a 42 percent rent upside potential.

Results

The Matthews™ team broke records by selling the property for the highest price per unit and price per square foot for a commercial multifamily property subject to Los Angeles City rent control in the prior 12 months. The team worked with the seller to extend the current tenant’s leases to stagger expiration dates creating a more favorable rent roll for the buyer who was looking to place funds into a property that generated stable income.