Silverton Apartments

OVERVIEW

• 10266 Silverton Avenue, Tujunga, CA

• 10 Unit Multifamily

• Seller: Earnest Trustees

• Buyer: Confidential

THE CLIENT

Lee & Associates Fiduciary Advisory Services Group was retained by Earnest Trustees to market for sale a 10 unit multi-family property in Tujunga, CA. The property had been in the same family for over 30 years. 

THE CHALLENGE

While COVID-19 lockdowns had eased, some of the tenants were still not paying due to the eviction moratorium in place, and the property suffered from deferred maintenance. 

OUR APPROACH

Given the low interest rate environment, we recommended listing the property at a very aggressive asking price; while advising the Trustee the offers would have a wide range. 

THE OUTCOME

With our systematic marketing system and good old fashioned cold calling of the sub-market, we procured 7 offers. The first contract was with a 1031 exchange buyer represented by an outside broker. Due to the deferred maintenance, the buyer did not renegotiate, and just canceled the contract. A new 1031 exchange buyer showed interest. Prior to submitting an offer, we personally interviewed and pre-qualified them, gaining an understanding of their investment criteria, history and strategy. Shortly thereafter, the property was under contract. After the Due Diligence period, the buyer asked for a modest price reduction reflective of the deferred maintenance, and closed all cash within fifteen days.