OC Apartment Brokers
SoCal Multifamily Sales Pulse - September 12, 2021 - September 18, 2021
Disclaimer: All information contained herein is obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only. We make no claim(s) as to the accuracy or reliability of the information presented. If you wish for us to analyze your specific property or situation please feel free to call or email us anytime.
Here's What's Happening In The Market, Here’s What This Means For You
House Tax Plans Lessen Pain for CRE Investors
Recent moves in Congress and the White House seemed to close doors on tax benefits for commercial real estate. But while a new proposal from House Ways and Means Committee chair Richard Neal does mean higher taxes, it would also temper some potential pain.
Long-term capital gain rates are currently slated to increase from 20% to 25%, or 28.8% including [an additional] net investment income tax, which to some might see as a relief since the original proposal had indicated these rates would increase to ordinary rates for high earners. Ordinary rates meaning a top 39.6% for individuals making more than $1 million a year that the Biden administration had proposed.
Something to remember, though, is that any such proposal is just that. With the need to pass the measure in the House, where some of the softening may not be popular, and to reconcile that version with the Senate, there’s no way to tell yet what might happen.
Orange County
Orange County multifamily had 11 Closed Sales Last Week. This is up slightly from the prior week when there were just 8 closed sales. This is still a bit low for Orange County as Orange County usually averages around 12-16 closed sales per week. The Closed Sales - Average Days on Market remained about normal at 31 days. 6 of the 11 Closed Sales Last Week were Transactions That Sold At or Above Asking Price.
This week’s SALE OF THE WEEK for Orange County is a 4 plex located on Newhope St. in Garden Grove. This property was initially listed for $1,300,000 and sold for $1,400,000 in 2 days. The property was built in 1976. The units consisted of one 3 bedroom 2 bath and three 2 bedroom 2 bath units. The units were updated in the last 5 years with newer appliances and finishes. There was room to increase the existing rents by approx. 20%. There are three 2 car enclosed garages and one 1 car garage. This 4 plex sold for $325 per sq. ft. The Orange County average price per sq. ft. is $651.
Orange County had a strong week for new listings last week with 19 new listings. Even with the strong week of new listings, the Total Number of Active Listings remained at 135 total active listings which is just about the same as the prior week when there were 133 total active listings. Months of Inventory remained at 2 months.
List of Closed Sales
Live MLS Link SALE OF THE WEEK
Southern California
Long Beach multifamily had a strong week of sales with 14 Closed Sales Last Week. This is the highest number of closed sales since the week of August 15-21 when there were also 14 closed sales. The Closed Sales - Average Days on Market was normal at 23 days. 8 of the 14 Closed Sales Last Week were Transactions That Sold At or Above Asking Price. There were two closed sales that were purchased using FHA financing and one closed sale that was purchased using VA financing.
This week’s SALE OF THE WEEK for Long Beach was a 4 plex located on San Anseline Ave. This 4 plex was listed at $1,399,000 and sold for $1,400,000 in 7 days. The property is located in a high-demand area of Long Beach known as Los Altos near Long Beach State. The property was built in 1950. The units consisted of one 3 bedroom 1 bath, one 2 bedroom 2 bath and two 1 bedroom 1 bath units. There was significant upside in rents of approx. 35-45%. The property sold at $415 per sq. ft. The average price per sq. ft. in Long Beach is $513.
Long Beach inventory had 7 New Listings Last Week. This number of new listings is about normal for weekly listings for Long Beach. The Total Number of Active Listings dropped back down below 100 after reaching 104 listings in the prior week. Active Listings, Dollar Volume increased to just above $234,000,000. Months of Inventory remained at 3 months.
List of Closed Sales
Live MLS Link SALE OF THE WEEK