1926 Santa Ynez Street
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- 1926 Santa Ynez Street
The sale of 1926 Santa Ynez Street began with trust. A minority partner who had previously worked with Max referred the opportunity to his general partner, with the understanding that the property would require thoughtful positioning in a market that had grown increasingly selective.
Background
1926 Santa Ynez Street is a six-unit Spanish-style multifamily property located two blocks west of Echo Park Lake and two blocks south of Sunset Boulevard. The property sits within walking distance of Echo Park’s primary lifestyle amenities, including the lake, neighborhood green space, and the established retail and dining corridor along Sunset Boulevard.
The building had undergone significant renovation prior to the sale. Four of the six units were extensively updated, blending original Spanish architectural elements with modern finishes designed to appeal to higher-income renters and families. The remaining units were in good condition, resulting in a largely turnkey asset positioned near the top of the Echo Park rental market.
With most units renovated and interest rates moving higher, ownership decided it was an appropriate time to exit and redeploy capital into their next project. While the physical condition and location fundamentals were strong, the timing introduced several challenges.
Challenges
At the start of marketing, four of the renovated units were vacant. Many buyers questioned whether projected market rents could be achieved, particularly as borrowing costs approached the mid-6 percent range. The property was offered at a 5.33% CAP rate, which further narrowed the buyer pool as investors struggled to justify new equity and debt at those pricing levels.
Exchange activity had slowed considerably, limiting demand from the traditional buyer base for turnkey assets. As a result, the initial pool of qualified buyers was smaller than it would have been in prior cycles.
Result
Rather than forcing a price adjustment early, Max focused on expanding visibility and maintaining disciplined messaging around the asset’s location, renovation quality, and long-term fundamentals. Increased exposure ultimately surfaced interest from an exchange buyer represented by an outside agent. The buyer had recently relocated to Los Angeles after selling an out-of-state property and was seeking a well-located income asset close to Echo Park and Downtown.
The transaction closed approximately 90 days after the listing was executed at 95% of the asking price, equating to $504 per square foot and a 5.5% CAP rate. The outcome reflected the importance of patience, pricing discipline, and buyer alignment when marketing turnkey assets in a higher-rate environment.
Story Details
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1926 Santa Ynez Street
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