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.

Knowing when is the right time to sell a particular real estate asset is a 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.

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.

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.

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 not just closing deals, but delivering fantastic client outcomes.

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.

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.

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!