Preserving a Legacy

615 S Manhattan Place

Property Type: Multifamily

Problem

A non-profit organization owned this 156 unit senior affordable housing property in Koreatown since the 1970s and the board of directors were presented with an off-market offer from a broker to sell the property. The board was most concerned that the buyer would pay a fair market price, preserve the property as affordable housing, and ensure that their legacy was carried on to the next generation.

Solution

LAA was hired by the non-profit to perform an extensive market analysis and valuation of the asset to determine the best course of action to meet their specific goals. LAA determined that the offer they received was $4 to $5 million below market. LAA implemented a targeted and proactive marketing campaign which clearly articulated the goals of the non-profit to the top tier affordable housing buyers. The campaign included in depth underwriting and face to face buyer interviews

Outcome

The campaign successfully yielded 25 offers and a purchase price of $22.5 Million, which was $4.5 Million higher than the off-market offer that the non-profit originally received. The new buyer also agreed to maintain the affordability status of the property and upgrade the building and units to preserve the legacy for future generations of tenants.