1016 N Laurel Ave, West Hollywood, CA 90046
10-Unit Mid-Century in West Hollywood
Sold: $3,275,000
Property Highlights
10 Units Built in 1963
9347 SqFt of living space
Represented family trust
Price/SF: $350 | Price/Unit: $327K
Cap Rate: 3.32% | GRM: 18.04
Sold to owner of neighboring property
Exchanged our client into passive DST investment after several decades of owning LA multifamily assets
The Deal Story
The Glaser Group is pleased to announce the successful sale of 1016 N Laurel Ave, a fantastic 10-unit investment property located in prime West Hollywood. Our client was an elderly, retired attorney who had purchased his 10-unit West Hollywood apartment building with his sister nearly 45 years ago. As a long-term owner of LA multifamily real estate, our client had never ventured into other asset classes. Upon his sister’s passing, he was facing several major issues with his Laurel Ave property:
Strict West Hollywood rent control was dampening his monthly cash-on-cash return
3rd party management company was overspending on repairs and dropping the ball with tenants regularly
Covid eviction moratorium resulted in several non-paying tenants with no retribution, as well as a freeze on his routine rent increases
Given this unfortunate situation with his current holdings, our client agreed that a 100% passive, DST (Delaware Statutory Trust) investment would be the perfect vehicle to increase his cash flow, preserve & grow his equity, forgo all management responsibilities, and ultimately leave a simpler estate to his heirs one day in the future.
By utilizing the Glaser Group’s 8-Step 1031 Exchange Process, we were able to secure a non-contingent offer from an existing, long-time client of ours who happened to own the neighboring property on Laurel Ave. During the escrow of the downleg property, we leveraged our vast network of DST sponsors and DST brokers to present various opportunities to our client. The available investments spanned all asset classes and regions of the U.S., including net-lease commercial, healthcare, multifamily, industrial, self-storage and senior housing.
Presented with a huge amount of diverse inventory, our client ultimately chose a multifamily student-housing DST, allowing him to passively own a share of an institutional quality asset in a higher yielding market. while still staying within a familiar asset class.
The DST closing was smooth, totaling 3 days from start to finish. In summary, the Glaser Group seamlessly executed on the client’s objective, increasing their cash flow by $58,000 annually while removing all day-to-day management responsibilities. The client plans to leverage a common “Swap ‘Til You Drop” strategy, meaning he will continue to exchange his appreciated proceeds into new DST opportunities as his sponsors ultimately exit their investments, leaving his heirs with a stepped-up basis.
If you are interested in learning more about this sale or exploring a multifamily disposition or 1031 exchange of your own, please give us a call.
Exclusively Listed & Sold By:
Jake Glaser
(310) 230-5157
jake@lyonstahl.com
