Published : Thursday, July 18, 2019 | 4:56 AM
Fair Oaks Apartments, a 21-unit complex in Pasadena, has traded hands between two private investors, according to a media report.
Located at 1730 North Fair Oaks Avenue, Fair Oaks Apartments was built in 1963 and features mostly one-bedroom and one-bathroom units and two two-bedroom/one-bathroom units. The property traded for $4.4 million, the Globest.com report said Wednesday.
The report added the value-add deal provided significant upside for the buyer, with rents 20 percent below market value and no rent control restrictions.
Mario Gandara, Vice President at NAI Capital’s Multifamily Services Group, with associates Ramzy Prado and Jenny Eng, represented both the buyer and the seller in the deal.
In April 2016, 1730 N Fair Oaks Avenue LLC sold the property for $3.7 million through a 1031 exchange that took two months to close. Gandara represented the buyer, Ann L. Walker, in the transaction.
A 1031 exchange, named after Section 1031 of the Internal Revenue Service code that regulates this type of transaction, allows private investors to exchange properties on a tax-deferred basis. The practice is also called property and mortgage trading.
The two-story Fair Oaks Apartments has 19 units with one bedroom and one bath, and two units with two bedrooms and one bath. The property is situated several blocks from John Muir High School and Washington Accelerated Elementary School.
At the time of the sale in 2016, the building was 100-percent occupied. The owners had the property in their portfolio since 2000.