Market: As we hit the middle of October, the Palms/Mar Vista multi-family market is beginning to cool off. Over the last four quarters, the average price per square foot and price per unit both decreased and average capitalization rates increased.

Interest Rates: The Federal Reserve is keeping its benchmark interest rate near zero, while interest rates for five- and 10-year fixed loans have decreased since August.
 
Valuation Metrics: Over the last four quarters, average price per square foot and average price per unit decreased by 4.8% and 12.1% respectively. Capitalization (CAP) rates for the period averaged 3.79%.
 
Rents: On average, year-to-date rents have decreased across almost all unit types, while year-over-year occupancy has decreased by 3.70%.
 
Outlook: With the Proposition 21 vote coming up in just a few weeks on November 3rd, apartment owners in Los Angeles are again facing the prospect of vacancy control. The outlook for the immediate and longer term future of the apartment market greatly hinges on the outcome of this vote.

Owners: Call us if you would like to receive offers for your investment property, or if you would like to know the current value of your property.

Buyers: Give us a call and let us know your buying criteria.

Referrals: If you know anyone who is considering selling their property, please don't hesitate to make an introduction or forward this email.
Rental Rates Overview
Small Balance Freddie Mac Lender Rates
Average Price Per Square Foot - Palms/Mar Vista
Trailing four quarters averaged $429 vs $451 for the same period in 2019.
Average Price Per Unit - Palms/Mar Vista
Trailing four quarters averaged $342,750 vs $390,000 for the same period in 2019.
Average Cap Rate - Palms/Mar Vista
Trailing four quarters averaged 3.79% vs 3.49% for the same period in 2019.
John Swartz | Managing Director | 213.430.2526 | CA Lic 01873487 | email me
Josh Kaplan | Managing Director | 213.430.2538 | CA Lic 01934177 | email me
Troy Lucero | Senior Associate | 213.457.1656 | CA Lic 02015705 | email me
601 S. Figueroa Street | Suite 3650 | Los Angeles, CA 90017
P: 213.624.5700 | F: 213.624.9203