RANKED TOP 50 IN THE NATION $2+ BILLION IN SALES MULTIFAMILY EXPERTS 500+ TRANSACTIONS 1031 Exchange Case Studies Sold P: 818.933.0350 F: 818.933.0450 www.berzackadvisors.com 15250 Ventura Blvd., Suite 100 Sherman Oaks, CA 91403 Lic. #01329015 Purchased Lee & Associates LA North/Ventura, Inc. Corporate ID #01191898 A Member of the Lee & Associates Group of Companies www.lee-associates.com
CASE STUDY #1 5x Increase in Cash Flow! Robert Oliker asked us to evaluate his retail center and determine the highest value it could command on the open market. The property had significant deferred maintenance and needed renovation. Based on the necessity for good value-add deals in the market, we aggressively marketed the center at an approximate 5.50% cap rate. After negotiating with many buyers, we found a buyer willing to pay all cash for the property. We also negotiated a three-month escrow with three 30-day extensions to allow us enough time to find an adequate exchange. Mr. Oliker was open to buying in most states but preferred Colorado as he has family there. We found him a perfect replacement property in a growing area of Colorado Springs. He was already familiar with the area, and the tenants in the new center included strong anchors Starbucks and Panda Express. As a result of this 1031 Exchange, we increased Mr. Oliker s cash flow fivefold. Tampa Plaza 8321 Tampa Avenue Northridge, California Retail Year Built: 1964 1 month 75 days Starbucks Anchored Center Woodman Plaza Colorado Springs, Colorado Retail Year Built: 2005 1 day 60 days
CASE STUDY #2 2-Month Escrow! Mr. Silliman asked us to evaluate his property and determine the highest value it could command on the open market. His apartment complex was in excellent condition but located in a tough area. We aggressively marketed the property at a 6.75% cap rate. After negotiating with a few buyers, we found a buyer willing to purchase the property. We negotiated a two-month escrow with one 30-day extension to allow us enough time to find an adequate exchange. Mr. Silliman wanted to buy a Triple Net property in Florida where his son lives. We found him an ideal replacement property in Orlando, an area with which he was already familiar, and we closed this transaction a few months later. Blythe Apartments 14700 Blythe Street Panorama City, California Apartments Year Built: 1963 4 weeks Represented: Seller Chipotle Mexican Grill 2850 S. Kirkman Road Orlando, Florida Single Tenant Year Built: 2004 Off Market 115 days
CASE STUDY #3 97% of Asking Price! Sonia Sabban asked us to evaluate her property and determine the highest value it could command on the open market. Her property was in good condition. We aggressively marketed the property at a sub 6% cap rate. After negotiating with a few buyers, we found a buyer willing to pay 97% of the asking price. Sonia wanted to buy a Triple Net property that was stable, had a low rent-to-sales ratio and was a corporate guaranteed lease. We found her an excellent property, an IHOP in Ohio. She was already familiar with the tenant, and we closed on this transaction a few weeks later, purchasing the property all cash. This was our second set of transactions with the Sabban family. Previously, we had sold an apartment building in Van Nuys and exchanged this property for a Wendy s restaurant out of state. McCadden Place Apartments 1340 N. McCadden Hollywood, California Apartments Year Built: 1965 60 days International House of Pancakes 2877 S. Arlington Road Akron, Ohio Single Tenant Year Built: 2002 Off Market 23 days
CASE STUDY #4 Substantial Cash Flow Increase! William and Chia Lui asked us to evaluate their property and determine the highest value it could command on the open market. Their property was in good condition and not rent-controlled. The Luis wanted to diversify by purchasing two Triple Net properties, each with corporate guaranteed leases. We were able to find the below Stripes corporate gas station, which allows for accelerated depreciation, as well as a Burger King. The Luis were extremely pleased with the outcome, which increased their cash flow substantially. Van Nuys Apartments 8849 Van Nuys Boulevard Panorama City, California Apartments Year Built: 1968 3 weeks 55 days Burger King 1901 S. Military Highway Chesapeake, Virginia Single Tenant Year Built: 1988 1 month 70 days Stripes 102 W. US Highway 83 Weslaco, Texas Single Tenant Year Built: 1996 65 days
CASE STUDY #5 $30M Total Value Most Above/At Asking Price! Warren Berzack was entrusted to dispose of an 11-property portfolio for the Gura Family in Los Angeles, California. The family had decided to divest itself of management-intensive properties and exchange into Triple Net properties across the country. The cumulative total of the deals when listed was $28,300,000. Through the careful fostering of a fierce bidding environment by fully exposing the properties to the marketplace, Warren was able to sell many of the properties at or above asking price. At closing, the total value amounted to $30,400,000. The family exchanged into the below properties, and the portfolio s cash flow increased from approximately 1% to 6%. Burbank Boulevard Apartments 12633 Burbank Boulevard Valley Village, California 30 Units Year Built: 1983 Coldwater Canyon Apartments 4560 Coldwater Canyon Boulevard Studio City, California 16 Units Year Built: 1992 8 weeks 120 days
Whitsett Avenue Apartments 5051 Whitsett Avenue Studio City, California 21 Units Year Built: 1985 Darlington Avenue Apartments 11915 Darlington Avenue Los Angeles (Brentwood), California 8 Units Year Built: 1963 3 weeks Represented: Seller Moorpark Street Apartments 11482 Moorpark Street Studio City, California 8 Units Year Built: 1990
Granville Avenue Apartments 1532 Granville Avenue Los Angeles, California 9 Units Year Built: 1987 1 week Texas Avenue Apartments 12217 Texas Avenue Los Angeles, California 10 Units Year Built: 1962/64 Represented: Seller Beverly Avenue Apartments 2419 Beverly Avenue Santa Monica, California 9 Units Year Built: 1956 2 days 140 days
11th Street Apartments 1111 11th Street Santa Monica, California 10 Units Year Built: 1959 4 weeks Represented: Seller Euclid Street Apartments 927 Euclid Street Santa Monica, California 7 Units Year Built: 1925 8 weeks 60 days Lake Avenue Storefront 524-526 S. Lake Avenue Pasadena, California Represented: Seller Year Built: 1941/1946 Renovation
Furr s Family Fresh Buffet 6111 San Mateo NE Albuquerque, New Mexico Year Built: 2006 1 month 5 months Perkins Family 3295 E. Platte Avenue Colorado Springs, Colorado Year Built: 2001 1 month 75 days Perkins Family 1495 Simms Street Golden, Colorado Year Built: 2001 1 month 75 days
Burger King 14251 Nicollet Avenue Burnsville, Minnesota Year Built: 1989 75 days Burger King 5105 Edina Industrial Boulevard Edina, Minnesota Year Built: 1991 75 days IHOP 1313 West Centerville Road Garland (Dallas), Texas Year Built: 2005 1 month 75 days
CASE STUDY #6 Over 99% of List Price! Angelo Mazzone had purchased a Sherman Oaks, California, property one year prior but was having difficulty managing it, given that the rest of his buildings were located in West Los Angeles. We suggested selling the Sherman Oaks building and exchanging into a property closer to his other properties. Mr. Mazzone agreed, and within one month we found a Buyer who paid over 99% of the list price. The Buyer was very well qualified and moved quickly with the transaction. While the property was in escrow, we found Mr. Mazzone the ideal replacement property, a 26-unit apartment building in West Los Angeles, and negotiated an excellent price for him. We put the property under contract and in 43 days from closing his downleg, Mr. Mazzone exchanged into a perfectly matched, well-priced building exactly where he had hoped to move his equity. Moorpark Apartments 13830 Moorpark Street Sherman Oaks, California 20 Units Year Built: 1978/2002 60 days Nebraska Apartments 11347 Nebraska Avenue West Los Angeles, California 26 Units Year Built: 2005 41 days 1031 Period: 43 days