Westmac Brokers $800,000 Multifamily Sale in Culver City, Highlighting Affordable Housing Transition
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 a multifamily property located at 2656-2662 ½ La Cienega Avenue in Culver City 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. The sale 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 approaches the expiration of a 30-year City Regulatory Agreement. The regulatory agreement likely provided incentives or requirements related to affordable housing provisions that have governed the property's operation for three decades. The transaction was handled by Westmac brokers T.C. Macker, CCIM, and Woody Cook, who represented the seller in the deal. Westmac Commercial Brokerage Company maintains its corporate presence at https://www.westmaccommercial.com, where the firm outlines its commercial real estate services spanning office, industrial, retail, and multifamily properties throughout the Los Angeles market.
This sale highlights the ongoing activity in Los Angeles County's multifamily market, particularly for properties with historical affordable housing components. The transaction's timing coincides with the natural expiration cycle of long-term regulatory agreements established decades ago, potentially creating new investment opportunities while raising questions about the future affordability of such properties once regulatory constraints expire. The use of an IRS 1031 exchange in this transaction demonstrates how investors are strategically navigating capital gains tax implications while participating in this evolving market segment. As more properties reach the end of similar regulatory periods, market observers anticipate increased transaction volume and potential shifts in housing affordability dynamics across Los Angeles County.
Curated from 24-7 Press Release
