1536 N Serrano Ave

The LAAA Team of Marcus & Millichap is proud to announce the successful closing of 1536 N Serrano Ave, a 42-unit LIHTC apartment community in East Hollywood, Los Angeles, which sold for $7,600,000.

When the seller's asset management team approached us with financials on two LIHTC properties, we did what we always do: the work. We built a full underwriting package tailored to the property's TCAC regulatory agreements and Section 8 voucher overlay, prepared draft OMs with detailed pricing models and closing statements for both properties, and presented a comprehensive marketing strategy to the seller.

After analyzing the buyer pool, we recommended splitting the two properties into separate listings rather than selling them as a portfolio. Each property had a distinct regulatory profile, and the buyers most interested in a 42-unit building in East Hollywood were not the same buyers who would target a property in the West Valley. The seller agreed, and we launched Serrano individually at $7,995,000.

Our marketing campaign included email blasts to over 25,000 principals and brokers, listings across eight online platforms including LoopNet, CoStar, Crexi, and Marcus & Millichap, direct phone calls to probable buyers, and a price reduction postcard mailed to area investors. The online exposure alone generated over 22,000 views on LoopNet. LIHTC narrows the buyer pool significantly. This is not a property that a conventional apartment investor can simply acquire and operate. It requires specialized knowledge of affordable housing compliance, TCAC regulations, and Section 8 administration. That filtering effect is exactly why the marketing breadth was critical: we needed to reach every qualified buyer in the market.

After generating multiple inquiries from several qualified parties, an experienced affordable housing buyer emerged as the strongest candidate. In a thin and specialized buyer pool, we advised the seller against countering over a narrow spread. The risk of losing a qualified and motivated buyer was real. The seller agreed, and we secured a fully executed contract at $7,600,000, representing 95% of list price, with a 30-day due diligence period and a TCAC transfer approval deadline built into the escrow timeline.

This is where the complexity of an affordable housing sale becomes apparent. Unlike a conventional closing, this transaction required three separate approvals running in parallel. First, the California Tax Credit Allocation Committee had to approve the change of ownership. This required a full transfer package including financial documentation and a Net Equity Distribution analysis. During the review, TCAC issued compliance findings that the property management team had to correct. After corrections were made, TCAC issued a closeout letter in January, clearing the way for the transfer approval. Second, because the sale exceeded $5,000,000, it would normally trigger Los Angeles' Measure ULA transfer tax. However, affordable housing properties can qualify for an exemption. We guided the buyer's team through the application process, providing eligibility guidelines, sample approval letters, and contract language. Third, the buyer secured agency financing for the acquisition, which came with its own timeline, survey requirements, and documentation demands. In the final days before closing, follow-up documentation requests from the lender pushed the firm commitment past the original target date, though the commitment was ultimately locked on February 13.

Beyond the regulatory process, standard due diligence uncovered items that required hands-on coordination. Issues were identified and the seller completed repairs during escrow. We coordinated weekly meetings between the buyer and seller teams throughout the entire process to keep every workstream on track, including inspections, regulatory filings, property management handoff, and vacancy leasing.

In a moment that captured the complexity of the process, both the TCAC ownership transfer and the ULA exemption were approved on the same day, January 13, 2026, clearing the final two regulatory hurdles simultaneously.

After one final short delay tied to the buyer's loan commitment, the deal closed on February 17, 2026. From listing agreement to close, the process spanned approximately 239 days and required coordination between over 15 parties across the seller's team, buyer's team, escrow, title, TCAC, the City of Los Angeles, and the buyer's lender.

Affordable housing and LIHTC properties require a level of coordination, regulatory knowledge, and patience that most brokers avoid. That is exactly why we lean into it. We are grateful to the seller for entrusting us with this assignment, and to the buyer's team for their professionalism throughout a complex and lengthy process. If you own an affordable housing property, LIHTC asset, or any multifamily building in Los Angeles and are considering a sale, we would welcome the opportunity to show you what our process looks like. Call Glen Scher at (818) 212-2808 or Filip Niculete at (818) 212-2748.