2661 Los Robles Rd, Thousand Oaks

The LAAA Team of Marcus & Millichap is pleased to present the closing of a turn-key three unit property located at 2661 Los Robles Road in Thousand Oaks, California.

The property offered an impressive 5.53% current CAP rate, based on current income and expenses. Furthermore, since the property has less than five units, the Buyer was able to lock in a residential financing at a very attractive interest rate of 3.625% , which is fixed for 30 years.

Lastly, with the new 2020 Accessory-Dwelling-Unit (ADU) laws for California, a buyer should be able to build an ADU on this large lot with very little push-back from the City since it is a new state-wide law. For more information on this new ADU law, please give us a call or email.

Deal Story:

This was a tough one... We originally listed this property in October of 2019 for $1,225,000. Over the course of our marketing campaign we encountered many obstacles. In total, during this 18 month process, we generated over 20 offers and we had 5 different escrows before we finally got this closed. Two of those escrows cancelled due to unreasonable re-negotiation requests from the buyers, and the other two canceled escrows were because of a low appraised value. Due to the fact that there were literally zero recent comparable sales of 3-unit properties in Thousand Oaks for the appraisers to go off, every appraiser had to use 3 unit sale comps in lesser areas in order to satisfy the bank's requirement of appraisal comps. The lower valued area comparables sales caused the appraisal value to continuously dip well below $1.1M, even though all of our escrows were under contract well above $1.1M. This low appraised value forced the buyer have to come up with a significant more cash down payment to buy the deal. Because of this, two buyers canceled escrow until finally the buyer who just closed escrow was willing to increase their down payment nearly $70,000 from 25% to 32% in order to buy this deal.

In the end, this deal was one of the tougher deals to to get closed, despite the fact that we had over 20 offers to choose from. The seller is now planning on using the proceeds of this sale to do a 1031 exchange into larger multifamily properties. The seller is more interested in growing their wealth over time rather than trying to increase their immediate cash flow. There are many different reasons to do a 1031 exchange, and if you are interested in reviewing all the different 1031 exchange options available, please give Glen...