LONG BEACH, CA - Bogie Investment Group of Marcus & Millichap, the leading multifamily brokerage team in Long Beach, has executed a seamless 1031 exchange from a 20-building portfolio of class “C” apartment buildings in Long Beach, California into two class “A” complexes in Orange County. The 20-building portfolio was listed for $40,955,000, and the Orange County uplegs were acquired for $57.6MM. Steve “Bogie” Bogoyevac, founder of Bogie Investment Group and a senior vice president in Marcus & Millichap’s Long Beach office, and Tyler Leeson, a senior vice president in Marcus & Millichap’s Newport Beach office, represented the seller.
The seller, a private investor, had held much of the portfolio since the 1980’s and decided to exchange because of market conditions, management burden, and the assurances of Bogie and Leeson that they could execute a seamless 1031 exchange. The portfolio, which comprised buildings ranging from 8 to 22 units and totaled 241 units, was ultimately sold to eight separate buyers, most of which were procured by Bogie and Leeson. Most of the purchase contracts were non-contingent at the opening of escrow with large nonrefundable deposits passed through to the seller for use in their 1031 exchange.
As a result of the exchange, the seller has moved from older, management-intensive buildings with deferred maintenance in class “C” neighborhoods into newer, larger, and updated class “A” complexes in Orange County. The complexes include a 111-unit apartment community in La Habra and a 92-unit apartment community in Tustin.
About Marcus & Millichap (NYSE: MMI): With over 1,700 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 9,000 transactions in 2016 with a value of approximately $42.3 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com