WESTMAC Arranges $800,000 Multifamily Property Sale in Culver City
TL;DR
BLRS Equities acquired this Culver City apartment building at $800,000 using a 1031 exchange, gaining a low-cost asset with potential value appreciation after rent control expiration.
WESTMAC Commercial Brokerage facilitated the sale of an 8-unit apartment building on a 5,759-square-foot lot through an IRS 1031 tax-deferred exchange transaction for $800,000.
This sale concludes a 30-year affordable housing initiative that provided stable housing following the 1994 Northridge earthquake with City of Los Angeles support.
The property sale connects back to earthquake recovery efforts and represents a rare opportunity with both historical significance and future regulatory timeline considerations.
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WESTMAC Commercial Brokerage Company has arranged the sale of 2656-2662 ½ La Cienega Avenue in Culver City, Los Angeles, for $800,000. The transaction involved an approximately 5,682-square-foot apartment building situated on a 5,759-square-foot lot containing eight residential units.
The buyer, BLRS Equities, acquired the property as part of an IRS 1031 tax-deferred exchange, a strategy that allows investors to defer capital gains taxes when selling and replacing investment properties. This transaction represents the conclusion of a long-term affordable housing investment that originated with support from the City of Los Angeles following the 1994 Northridge earthquake.
T.C. Macker, CCIM of WESTMAC noted that the buyer acquired the asset at a low price point and low price per unit, though the property remains subject to rent control regulations and is approaching the expiration of a 30-year City Regulatory Agreement. The regulatory agreement, established through programs available at https://housing.lacity.org, has governed the property's affordability requirements for nearly three decades.
The sale highlights ongoing transitions in Los Angeles' affordable housing landscape as long-term regulatory agreements near expiration. Properties like 2656-2662 ½ La Cienega Avenue represent a segment of the housing market that has provided stabilized rental rates for decades under city oversight, with their future affordability status becoming increasingly uncertain as agreements sunset.
WESTMAC professionals T.C. Macker, CCIM, and Woody Cook represented the seller in the transaction. The brokerage firm, which maintains information about its services at https://www.westmaccommercial.com, specializes in commercial real estate transactions including multifamily properties, office, industrial, and retail assets throughout the Los Angeles area.
This transaction occurs amid ongoing discussions about affordable housing preservation in Southern California, where properties with expiring regulatory agreements face potential conversion to market-rate housing. The sale price of $800,000 for an eight-unit building reflects the complex valuation considerations involving rent-controlled properties with impending regulatory changes.
Curated from 24-7 Press Release
