Lee & Associates Arranges SoCal Sale

In a tax-deferred transaction, SOMA Realty sold a 16-unit multifamily asset in Pasadena, Calif. Principal George Yessaie represented the buyer.

A private investor has bought a 16-unit community in Pasadena, Calif. for a little over $5 million. Lee & Associates-LA North/Ventura Inc. Principal George Yessaie represented the buyer in the transaction.

“SOMA Realty LLC was looking outside of Southern California for its 1031 exchange upleg because pricing in this market is considerably higher,” Yessaie said in prepared remarks. “But the company wanted to stay in Southern California where it believed it could achieve the highest equity growth whereas other markets offered mainly cash flow.”

According to Lee & Associates-LA North/Ventura Inc., rent prices were more than 30 percent below the market rate at the time of the sale. In 2017, Pasadena asking rents rose by 4.3 percent, while effective rents climbed to 4.1 percent in the same period.