SDC Properties has owned multifamily in Los Angeles for a long time, and he’s also a private lender. He and his team are among the most experienced, knowledgeable owners we’ve worked with, the kind of clients who already know the answer to most questions before they ask them.
When they began looking at moving capital out of state, they wanted data, not opinions. We put together detailed reports on each market they were considering, pairing our national and Los Angeles research with local reports on each submarket. Colorado Springs stood out. Rents there had been climbing year over year, and the numbers made the case. They found a large property there and tied it up.
That’s when the real work started. To fund the purchase through a 1031 exchange, they needed to sell four Los Angeles buildings: three in the San Fernando Valley, a 15-unit on Haskell, a 7-unit on Fulton, and a 4-unit on Victory, plus a 42-unit built in 1986 on Rodney in Los Feliz. And the sales had to close close together, so the proceeds would line up with the exchange timeline.
Selling one building on a deadline is manageable. Selling four, each with its own buyer, its own escrow, and its own set of things that can go wrong, is a different job. We marketed all four, chose buyers based on who could close on our timeline, and managed every escrow so that a delay on one wouldn’t throw off the others.
All four closed within a short window of each other, and the exchange went through as planned.
Transaction Snapshot
- Assets: 15 units on Haskell, 7 units on Fulton, 4 units on Victory, 42 units on Rodney
- Total: 4 buildings, 68 units
- Markets: San Fernando Valley and Los Feliz
- Client: Long-term LA owner and private lender
- Strategy: 1031 exchange into Colorado Springs
- Outcome: All four closed within a short window, exchange completed
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