03 May Value Add in this Market? Off Market Deal SOLD with 70% Upside Steps to Beach
Value Add in this Market?
Off Market Deal SOLD with 70% Upside Steps to Beach
Prosser Stevens agent Eric von Bluecher negotiated on behalf of a local family investor to purchase this 9 unit property in Marina del Rey with serious deferred maintenance. This off-market transaction was the perfect match of a retiring Seller looking to leave the management headaches behind with a Buyer who had certainty of closing, experience and a crew ready to tackle the project and reposition the asset. The Seller’s family had owned the property for decades and while it generated great cash flow, it was in dire need of repairs and renovations inside & out.
The transaction proved to be very complicated & challenging due to the age, language barriers & inexperience of the sellers. However, due to our experienced Transaction Management team, negotiation, and brokerage skills (and thankfully a patient buyer!) our clients were able to land an incredible deal in this overheated market.
This sale was a win-win, and both the buyer and seller were very content with the outcome. The seller was very happy that the asset was sold for nearly $400k per unit, $550/sq. ft., 21.5 GRM and a 2.56 Cap, while the buyer was very happy that we were able to get this done for over $180k less per unit than the most recent comp on the Marina Peninsula. The buyer will get nearly 70% upside in rents and bank the land for future development since this property is 100 yards to the beach on a very large lot. Thanks to Eric’s persistence our client acquired a perfect value add opportunity, difficult to find these days on the Westside, steps from the sand, restaurants, canals, the marina and will eventually rehab this opportunity to cherry condition which the tenants and neighbors should appreciate as well.
Eric specializes in the oceanfront markets of Los Angeles including Santa Monica, Venice, Marina del Rey, Pacific Palisades and Playa Vista. Please contact Eric for a complimentary evaluation of your multifamily investments.
Eric M von Bluecher BRE#01926201
Prosser Stevens Real Estate Investments