Los Angeles has been experiencing a tidal wave of new buyers for multifamily properties lately, and the momentum only seems to be pushing forward amidst the lack of current inventory. Partners Trust has been busy with it's commercial division in bringing off-market deals to its investors.
To say deals are happening all over town is a bit of an understatement. The popular commercial real estate search tool LOOPNET has seen a drastic reduction in available on market product in the multifamily sector. Brokers and principals have been meeting off the grid to get deals placed. 1031 exchanges have added weight to the deal flow by presenting a challenge for would be sellers.
The need to find an 'up-leg' or 'replacement' property has deterred many buyers from moving ahead full steam with sales. This comes at a time when prices have reached severely high levels and the allure of cashing in on an investment are as tantalizing as ever. The real crux is in the acquisition of a similar property in order to defer capital gains tax on the proceeds earned from a sale. These high dollar assets, while appealing to many investors from all over the world, each present their own unique challenges to new investors.
Having a solid broker working on your side to find the best solution to any challenges presented is a must. I can assure you that you will get what you pay for in the long run by choosing wisely in the beginning. Brokers play a pivotal role in the structure on an investment at any level. My clients continue to ask for my guidance on their transactions and in return, they get a full-service broker who knows what to look for in a deal. I look forward to many more years of building relationships with clients.