
$1.25M
10650 Camarillo St, North Hollywood
Sale Price
$1.25M
Units
2
Price/Unit
$625,000
Cap Rate
3.23%
Type
Apartment Building
Closed
July 2023
Toluca Lake Duplex | Sold Above List Price | Seller Exchanged into DSTs
the successful closing of 10650 Camarillo St, a primely located duplex in Toluca Lake, CA. This is the first time in over 23 years that this property has been sold.
We quickly generated an above list price, all-cash, and fully non-contingent offer in the first week of marketing. The seller jumped on this offer and escrow was smooth leading to our closing earlier this week.
Seller's All-Time Successful 1031 Exchange into DSTs
The seller of this Toluca Lake duplex exchanged their property for a Delaware Statutory Trust (DST) portfolio. In 2022, the seller's duplex brought in $14,525 in net cash flow, after expenses and loan payments. This equated to just over $1,200 per month and a return on equity of a mere 1.32%.
In contrast, with the new DST portfolio, the seller is projected to generate $74,780 of net cash flow, or roughly $6,200 per month, in the first year alone. This represents a remarkable increase in net cash flow of 415% following the 1031 exchange, equating to over five times the previous amount.
This dramatic increase led us to question: Was this 415% increase the largest percentage increase in net cash flow that we've ever achieved for our exchange clients?
After a deep dive into our past exchanges, we can confirm that this 415% cash flow increase is indeed the highest percentage increase we've ever achieved. In second place is an exchange we facilitated earlier this year for a client who sold a 10 unit property in Manhattan Beach and exchanged into an NNN property (Caliber Collision), which resulted in a 301% increase in net cash flow.
While maximizing returns may not always be the primary goal of an exchange, we take great pride in having increased this client's net cash flow by over five times.
To see the detailed breakdown of this excellent 1031 exchange case study, please
Quick Dive into 1031 Exchange Options
Our curiosity prompted us to dig deep into nearly a decade's worth of data from the 1031 exchanges we've managed for our clients. In doing so, we unearthed some intriguing trends:
Interesting Exchange Fact #1 - Most Popular Exchange Options
Of the numerous exchanges we've facilitated for clients after selling their LA apartment building, three types stand out as the most popular type of property to exchange into. For the purpose of this email, we're going to focus on those three categories, as follows:
#1) Single Tenant Triple Net (NNN) - 60% of our exchanges
#2) Out-of-state Apartment Buildings - 25% of our...