OC Apartment Brokers
SoCal Multifamily Sales Pulse - March 1, 2021 - March 7, 2021
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Here's What's Happening In The Market, Here’s What This Means For You
Landlords, Beware
The economic downturn amid the COVID-19 pandemic has caused some to accept partial rent payments from struggling tenants. But a nugget within a new ruling in a landlord-tenant lawsuit suggests potential unintended consequences.
“Landlords have to be careful when they take lesser payments, especially during COVID, that they are not entering into a new agreement,” said Roy D. Oppenheim, co-founder and senior partner of Florida-based Oppenheim Law, who was not involved in the litigation.
That’s precisely what happened in a dispute before the Court of Appeals of Georgia, in The Hatchett Firm v. Atlanta Life Financial Group—a case involving law-firm tenants and their landlord.
In it, the court sided with the law firm litigants, finding that by accepting reduced and irregular payments for an extended period, plaintiff Atlanta Life Financial group had created a quasi-new agreement. It ruled that by accepting 16 months of initially reduced rent, and then non-payments outside the scope of the initial contractual agreement, the landlord had waived its rights to collect rent.
Orange County
Orange County multifamily had 20 Closed Sales Last Week. The highest number of Closed Sales in quite a while. Out of the 20 Closed Sales Last Week almost half (9) were duplexes. There were 5 Closed Sales in Costa Mesa, 3 Closed Sales in Huntington Beach and 3 Closed Sales in Newport Beach proving that Costa Mesa, Huntington Beach and Newport Beach or beach/coastal cities are in strong demand. Orange County in general has the fastest Absorption Rate (2.31 months) in comparison to the other Southern California counties. All other stats remained pretty consistent although Active Listings, Dollar Volume was down below $500,000,000 for the first time.
List of Closed Sales
Southern California
Long Beach multifamily Closed Sales Last Week came in with 6 Closed Sales. Down from 8 Closed Sales in the prior week and still in single digits for the last 3 weeks. One positive to take from the recent Closed Sales is the Average Days on the Market stat is still below 40 Days on Market. So any property that is selling is selling in a pretty short period of time. Out of the financed transactions, there was 1 transaction that used FHA financing and 1 transaction that used VA financing. The Total Number of Active Listings was down slightly but most other listings and inventory stats were pretty consistent with prior weeks.
List of Closed Sales