Selling an apartment building in Los Angeles starts with an accurate, rent-roll-based valuation, then a positioning strategy that targets the right buyer pool for your submarket and a marketing campaign built to create competition. The Group CRE begins every engagement with a free valuation grounded in actual closed comparables, plus a read on your rent-control status, Measure ULA exposure, and upside story. We've closed $488M+ across LA with a 97.6% list-to-sale ratio and an average 47-day close.

Most well-priced Los Angeles multifamily properties go under contract within 30 to 60 days, with another 30 to 60 days to close escrow depending on financing and due diligence. The Group CRE sells listings roughly 28% faster than the LA market average and closes in about 47 days once in escrow, because a correctly priced, well-packaged building attracts serious buyers quickly. Timelines stretch when a property is mispriced, carries a complicated rent roll, or hits financing friction.

Commercial real estate commissions in Los Angeles are negotiable and typically range from about 2% to 5% of the sale price, depending on deal size, complexity, and whether the fee is split with a buyer's broker. What matters more than the headline rate is net proceeds: a broker who runs a competitive process and prices correctly often nets you more even at a standard fee. We're glad to walk through our fee structure and the value behind it on an intro call.

Both can work, and the right answer depends on your goals. A public listing maximizes exposure and competition, which usually drives the highest price, while an off-market sale offers privacy and speed and can suit sensitive ownership situations or when discretion matters to tenants. The Group CRE runs both and will recommend the approach that fits your timeline, rent roll, and whether you're optimizing for top dollar or certainty.

Selling a rent-controlled building comes down to how well you tell the story of the gap between in-place rents and market rents. A skilled broker frames that gap as controlled, durable upside rather than a liability, and markets to buyers who underwrite to long-term income growth under LARSO, AB 1482, or your city's local ordinance. Because LA has eight separate rent-control frameworks, pricing and buyer pool shift meaningfully by jurisdiction; see our LA Multifamily Regulatory Guide for the details.

At minimum, buyers and brokers will want a current rent roll, a trailing 12-month income and expense statement (T12), copies of all leases, your rent-control registration status, and a record of recent capital improvements. Having utility bills, service contracts, and any ULA or relocation documentation ready speeds underwriting and reduces the chance of a re-trade. We provide a simple seller checklist at the start of every engagement so nothing stalls escrow.

Knowing when is the right time to sell a particular real estate asset is nuanced and depends on a number of factors including your specific financial goals, market conditions and trends, potential tax implications, and financial opportunity cost. The Group CRE acts as a strategic partner for all of our clients evaluating all of your potential options and helping determine whether it might make sense to sell your multi-family property. As part of our engagement with our clients, we offer a free valuation of your property to help get the conversation started.

We’re happy to work with you to explore your options after inheriting a property. Simply submit our Contact Request form, and a member of our team will reach out shortly. We also partner with top Los Angeles accounting and tax professionals who can help guide you through your specific situation.

Buying an LA apartment building means defining your target submarket and return profile, arranging financing in advance, and underwriting each deal for rent-control status, Measure ULA exposure, and realistic upside. The Group CRE represents buyers across every LA submarket and brings off-market access plus deep familiarity with what actually trades and at what price. Browse our active listings or tell us your buy box to get started.

Most Los Angeles multifamily acquisitions require a 25% to 35% down payment, so on a $2M building you should plan for roughly $500K to $700K in equity plus closing costs and reserves. Smaller 2 to 4 unit properties can sometimes be financed with less down through residential loan programs, while larger deals use commercial financing sized to the building's net operating income. We can connect you with multifamily lenders who know the LA market.

Apartment buildings in LA are typically financed with commercial multifamily loans from banks, credit unions, agency lenders such as Fannie Mae and Freddie Mac, or debt funds, with terms driven by the property's net operating income and debt-service coverage ratio rather than just your personal income. Rates, leverage, and structure vary widely, so it pays to shop two or three lenders before you're in escrow. The Group CRE maintains relationships with active LA multifamily lenders and is glad to make introductions.

As of 2026, Los Angeles multifamily cap rates generally run from about 3.5% to 5.0% in premium coastal submarkets like Beverly Hills and Santa Monica, up to 5.5% to 6.5% or more in higher-yield areas such as the San Fernando Valley, South LA, Long Beach, and Inglewood. What counts as good depends on your strategy: lower cap rates buy stability and appreciation, while higher cap rates buy cash flow and value-add room. See our neighborhood guides for current submarket-by-submarket ranges.

Yes. A 1031 exchange lets you defer capital gains tax by rolling proceeds from a sold investment property into a like-kind replacement, and LA apartment buildings are a popular landing spot for exchange capital. You must identify replacement property within 45 days and close within 180 days, and to fully defer tax the replacement should be equal or greater in value with all proceeds reinvested. The Group CRE guides 1031 buyers through this regularly and can line up qualified properties inside your identification window. This is informational only; consult your tax advisor.

Los Angeles remains one of the most resilient multifamily markets in the country, with chronic housing undersupply, sub-4% vacancy in many submarkets, and pricing dislocation from Measure ULA and rent-control complexity that informed buyers can use to their advantage. The best time to buy is deal-specific rather than market-wide: the right building at the right basis pencils in almost any cycle. We'll help you separate genuinely good deals from value traps.

You can sign up for our email list here to be notified of all new property listings. If you're an investor looking for a particular type of multi-family asset, feel free to submit our Contact Us form and a member of our team will be in touch shortly to see if we can help you find a property that matches your investment criteria.

If you're looking for a complete list of our active property listings, you can review them here.

Multifamily value is driven by net operating income, so the highest-impact moves are raising in-place rents to allowable levels, cutting controllable expenses, and adding income streams like RUBS utility billing, parking, or storage. In Los Angeles, capturing the gap between rent-controlled in-place rents and market, within LARSO or AB 1482 limits, plus selective unit renovations and potential ADU additions are the most common levers. We'll model which improvements actually move your valuation before you spend a dollar.

Refinancing lets you pull equity out tax-free while keeping the asset, which makes sense when you like the property's future and rates cooperate; selling, often via a 1031 exchange, makes sense when your equity is trapped at a low yield, the building faces rising rent-control or capital-expense pressure, or you want to reposition into higher cash flow. The right call hinges on your in-place yield, loan terms, and goals. We'll run both scenarios with you at no cost. This is not financial advice.

Often yes. California and Los Angeles have streamlined accessory dwelling unit (ADU) rules, and converting underused space like garages, storage, or surplus land into ADUs can add rentable units and net income to an existing building. ADUs generally fall under the statewide rent cap rather than local rent stabilization for a set period, which can make the new income more flexible than your existing units. Feasibility depends on lot size, parking, and permitting, so it's worth a project-specific review; see our Landlord Hub or reach out.

It depends on which framework covers your building. Under the City of LA's RSO the current allowable increase is 4% (or 3% where the tenant pays gas and electric); cities like Santa Monica, Beverly Hills, and Culver City set their own caps, while buildings governed only by California's AB 1482 are capped at 5% plus regional CPI, roughly 8.8% for the LA area in 2026. Increases generally can't be banked across years, so timing matters. Confirm your building's rules in our LA Multifamily Regulatory Guide. Verify current rates with your local housing department; not legal advice.

The Group CRE specializes in multifamily brokerage, selling, buying, and 1031 exchanges, rather than day-to-day property management, but we maintain a vetted network of Los Angeles property managers, tax professionals, and legal advisors we're glad to refer. Many owners come to us while weighing whether to keep managing, hand it off, or sell, and we help think through all three. Reach out and we'll point you in the right direction.

Cap rates vary widely by submarket: as of 2026, premium coastal areas like Beverly Hills and Santa Monica trade around 3.5% to 5.0%, central submarkets like Koreatown, Silver Lake, and Mid-Wilshire in the 4.5% to 5.5% range, and higher-yield markets such as the Valley, South LA, Long Beach, and Inglewood at 5.5% to 6.5% or more. Vintage, rent-control status, and unit mix move these ranges meaningfully. Each of our neighborhood guides breaks down the current numbers submarket by submarket.

The best neighborhood depends on your strategy: Beverly Hills, Santa Monica, and West Hollywood reward long-term holds with stability and appreciation; Koreatown, Silver Lake, and Echo Park balance yield and growth; and Long Beach, Inglewood, and South LA tend to deliver the strongest cash flow and value-add upside. Regulatory exposure, especially Measure ULA and which rent-control framework applies, should weigh as heavily as the cap rate. Compare them in our LA neighborhood guides.

Gross rent multiplier (GRM) is the purchase price divided by annual gross rental income, a quick way to compare buildings before digging into expenses. Across Los Angeles, GRMs typically run from about 10 to 13 in higher-yield submarkets to 16 to 19 or more in premium areas like Beverly Hills, where buyers pay up for stability and the address. GRM is most useful alongside cap rate and price-per-unit, since below-market rent-controlled rents can make a great building look deceptively expensive on GRM alone.

The highest multifamily cap rates in LA, generally 5.5% to 6.5% or more, are found in higher-yield, more affordable submarkets such as the San Fernando Valley, South LA, Long Beach, and parts of Inglewood, where price-per-unit is lower and cash-on-cash returns are stronger. These markets trade higher yields for more hands-on management and, in some cases, more value-add work. Higher cap rates also reflect different rent-control and buyer dynamics, which we break down in the relevant neighborhood guides.

Measure ULA's transfer tax on City of LA sales above roughly $5M has compressed pricing on larger buildings inside city limits and pushed some investor demand toward adjacent cities, like Beverly Hills, Culver City, and Long Beach, that aren't subject to it. Rent control adds a second layer: buildings with deep gaps between in-place and market rents are valued on how realistically that gap can be closed under LARSO or AB 1482. The net effect is wide pricing variation between otherwise similar buildings. Our Regulatory Guide explains why.

Measure ULA (the mansion tax) is a City of Los Angeles transfer tax that adds 4% on sales at or above roughly $5 million and 5.5% on sales at or above roughly $10 million, paid by the seller on the full sale price, and the thresholds adjust annually for inflation. It applies only within City of LA boundaries, so a building in Santa Monica, Beverly Hills, Culver City, or Long Beach has zero ULA exposure. On a $7M city sale that's about $280,000 in extra tax, so it materially affects net proceeds. See current thresholds in our Regulatory Guide. Informational only; not tax or legal advice.

Because Measure ULA applies only to City of LA sales at or above the roughly $5M threshold, the main levers are location and structure: properties just outside city boundaries aren't subject to it, sales priced below the threshold avoid it entirely, and certain affordable-housing, nonprofit, and qualifying-entity transfers are exempt. Some sellers also evaluate timing and deal structure with counsel. Exemptions must be documented before closing, so we coordinate with your tax and legal advisors to model the options. Informational only; not tax or legal advice.

LARSO is the City of Los Angeles Rent Stabilization Ordinance, which caps increases on most pre-October-1978 buildings inside city limits. Local RSO refers to the separate ordinances run by other cities, Santa Monica, Beverly Hills, West Hollywood, Culver City, Inglewood, and others, each with its own caps and coverage dates. AB 1482 is the statewide cap (5% plus CPI, max 10%) that applies to most buildings not already covered by a stricter local ordinance. LA has eight frameworks in total; find yours in our Regulatory Guide.

Selling an investment apartment building in California typically triggers federal and state capital gains tax, depreciation recapture (taxed up to 25%), and, for sales inside the City of LA above the threshold, the Measure ULA transfer tax. Many owners defer the capital gains and recapture portion using a 1031 exchange into a like-kind property. Because these stack and the numbers get large quickly, we coordinate with trusted LA tax professionals before you list. Informational only; consult a CPA.

Before buying, confirm exactly which framework governs the building, LARSO, a city-specific RSO, county RSO, or AB 1482, because that determines allowable increases, just-cause eviction rules, and your realistic path to market rents. Also verify the building's registration status, the gap between in-place and market rents, and whether any units carry relocation or compliance obligations. Two buildings a block apart can fall under different rules, so jurisdiction verification is step one of underwriting. Not legal advice.

The sale of a multi-family property typically triggers capital gains tax, depreciation recapture, and may have additional tax consequences depending on whether it was a primary residence, investment, or partially owner-occupied property. 

Included are some, but not necessarily all of the tax implications associated with selling a multi-family property:

Capital Gains Tax

• Gains from properties held for over one year are taxed at the favorable long-term capital gains rate—either 0%, 15%, or 20% depending on total income.
• If held for one year or less, short-term gains are taxed as ordinary income at your regular tax bracket.
• To calculate capital gain:
  
  • Start with the sale price minus selling expenses (agent fees, closing costs).
  • Subtract the property’s adjusted basis (original cost + capital improvements − depreciation taken).

Depreciation Recapture

• If you claimed depreciation on the property as a rental, the IRS requires you to “recapture” this upon sale.
• The depreciation taken must be reported and is taxed at a maximum rate of 25%, separate from capital gains tax.
• Example: If you bought for $150,000 and depreciated $25,000 over ownership, the first $25,000 of gain is taxed at this recapture rate.

Primary Residence Exclusion

• If you lived in one or more units as your main home for 2 out of the last 5 years, you may qualify for the primary residence exclusion:
  
  • Up to $250,000 of gain can be excluded if filing single, or $500,000 jointly.
  • For multi-unit properties (e.g., duplex if you lived in one unit), only the proportional share used as your primary home qualifies; the rest is taxed as investment property.

1031 Exchange (Tax Deferral)

• ‍‍Investors can defer capital gains tax on the sale of an investment property by reinvesting the proceeds into another like-kind property (also known as a 1031 exchange).
  
  • Only real estate held for investment or business use qualifies. Primary residences, second homes, and personal property do not qualify.
  • In order to successfully complete a 1031 exchange you must identify replacement property within 45 days, close within 180 days.
  • To fully defer capital gains, the replacement property must be equal to or greater in value, and all proceeds must be reinvested. Any leftover cash ("boot") is taxable.

We’d be glad to help you explore your options for selling a multi-family property. Once you submit our Contact Request form, one of our team members will reach out. We also partner with trusted Los Angeles accounting and tax experts who can guide you through your unique circumstances.

Disclaimer: This is not financial advice and professional tax advice is highly recommended for accurate calculations and to optimize tax outcomes.

A 1031 exchange allows investors to defer capital gains tax on the sale of one investment property by reinvesting the proceeds into another like-kind property. The like-kind exchange must involve real estate properties, not personal property (except in specific cases, such as real estate businesses). The exchanged properties must be in the United States to qualify. There are strict time limits: The replacement property must be identified within 45 days, and the exchange must be completed within 180 days. Cash or mortgage differences, called “boot,” can trigger tax liabilities.

We are experts in 1031 exchanges, with extensive experience guiding clients through successful transactions. If you’re thinking about selling your property and exploring a 1031 exchange, reach out — we’d be happy to help.

Buying or selling property in Los Angeles requires attention to a variety of city and state regulations, including new laws for 2025, special taxes, rent control, disclosure standards, and heightened penalties for noncompliance.

• Measure ULA ("Mansion Tax"): Starting July 1, 2025, any sale over $5.3 million is taxed at 4%, and any sale over $10.6 million is taxed at 5.5%, payable from the first dollar of the transaction.
• Just Cause Eviction and Rent Control: Expanded just-cause eviction rules (SB 567) and stronger rent control protections require substantial documentation for tenant removal, plus mandatory relocation assistance for evictions under certain conditions.
• Security Deposit Caps: New state law (AB 12) restricts the maximum security deposit landlords can charge.
• Predatory Offer Ban and Fire Recovery Zones: Unsolicited, undervalued offers to property owners in fire-affected ZIP codes are banned and subject to criminal penalties through July 2025; real estate professionals must avoid these areas unless approached by owners.
• Disclosure Requirements: Recent updates require more extensive property disclosures, especially for homes flipped within 18 months, and stricter rules for lead paint, water usage, and natural disaster risks.
• ADU Rules and Permitting: New legislation streamlines approval for accessory dwelling units (ADUs) within 60 days; ADUs are exempt from city rent stabilization for 30 years but subject to California’s statewide rent cap.
• Affordable Housing/Qualified Entity Sales: Some fire-recovery and special zone properties require compliance certificates and affordability covenants if sold to qualified entities, restricting resale and tenancy arrangements.
• Balcony and Structural Inspections: SB 721 and AB 2579 require multifamily buildings to comply with updated safety inspection and repair mandates.

That being said, regulations can always change so sign up for our newsletter to get updates on local regulations and any changes relevant to real estate in Los Angeles!

The best multifamily broker in Los Angeles is the one with the deepest specialization in your asset type and submarket, and by that measure The Group CRE, led by LA Times-recognized CRE visionary Taylor Avakian, is among the city's top choices, with $488M+ closed, a 97.6% list-to-sale ratio, and 50+ five-star reviews. We work exclusively in LA multifamily, so we know the buyers, the comps, and the regulations cold. See our results and our team, then judge for yourself.

Look for a broker who specializes specifically in multifamily in your part of Los Angeles, has recent closed comparables in your submarket, and carries strong, verifiable reviews. The Group CRE is based in Century City and works across every LA submarket, from the Westside and the Valley to Koreatown, DTLA, South LA, and Long Beach. Read our reviews and results, or call us at 916-996-4421 to talk through your building.

Choose a broker on specialization, process, and track record, not just the highest suggested price. Ask how many multifamily deals they've closed in your submarket, how they'll market your building, how they handle rent-control and Measure ULA positioning, and what their actual list-to-sale ratio and average days-on-market are. A broker who anchors to a flattering number to win the listing, then chases the market down, costs you far more than one who prices it right. Compare our process and track record, then reach out.

The Group CRE specializes in Los Angeles multifamily real estate, helping owners and investors maximize value through expert brokerage, property evaluations, and strategic guidance. From exclusive apartment listings to fully entitled development opportunities, our team provides transparent valuations, tailored deal structuring, and seamless 1031 exchange support. With a proven record of over $488 million in sales and 1,000+ property evaluations, we deliver the insight, speed, and results clients trust. We’re happy to provide you with a free valuation of your property.

The Group CRE, led by Taylor Avakian, stands apart with a deep focus and specialized expertise in Los Angeles multi-family properties. Recognized by the LA Times as a Commercial Real Estate Visionary, Taylor and his team combine deep market expertise with a proven track record: over $488 million in transactions, 97% list-to-sale ratios, and an average 47-day close. Clients trust The Group CRE for transparent communication, strategic guidance, excellent marketing, unparalleled relationships with other brokers, and access to top local accounting and tax professionals. The Group CRE prides itself on not just closing deals, but delivering fantastic client outcomes.

While we have experience working across multiple types of commercial real estate, The Group CRE's expertise and speciality is multi-family properties across the Greater Los Angeles Area. Our team is highly regarded as leading experts and one of the top multi-family brokers in Los Angeles having sold nearly $500M of commercial real estate in recent years.

While of course we're proud of our team's sales volume, we're even more proud of the results we're able to deliver for our clients. The Group CRE has 50+ 5-Star Reviews, a 97.6% List/Sales Ratio, and The Group CRE sells listings 28% faster than the Los Angeles average.