A few quick takeaways from what I've been seeing in Eastside & Pasadena multifamily

Expenses vs. Interest Rates

The biggest pain point for owners continues to be expenses, not interest rates.

Many sellers tell me they're waiting for interest rates to come down before considering a sale. While lower rates would certainly help financing and improve buyer demand, they have not solved the challenges facing many Los Angeles and Pasadena apartment owners.

Taking Control of Your Operating Expenses

Operating expenses have risen 20–40% for most owners in the past 5 years, led by increases in insurance, water, and trash bills. Here are a few ways owners are reducing costs:

• Trash – The two biggest factors driving your bill are pickup frequency and distance charges. By scheduling a waste assessment and moving bins as close to the street as feasible, some owners have reduced their bill by as much as 50%.

• Water – Install sensors on all tenant toilets to detect excess usage and potential leaks. A ~$200 sensor per toilet can reduce your water bill by 15–30%. There are many local vendors that source water usage monitoring at a reasonable cost.

• Insurance – Make sure your insurance agent is actively shopping the market. One of my recent clients bought 8 units in Brentwood that was getting quoted at $1.85/foot. Their broker found them a full coverage policy with Amtrust at $1.10/foot.

Recent Deals From The Field:

• 3555 Siskiyou Street – banked owned foreclosure under contract with the same buyer from our 3537 Siskiyou Street sale last month. This property consists of 5 units and 2 nearly-complete ADUs spread across 2 parcels.

• 2837 Ganahl Street – duplex in Boyle Heights under contract with a last asking price of $499,000. Buyer is a local owner and developer who will build 2 ADUs in the rear while exploring long-term repositioning opportunities.

• 5830 La Mirada Ave – 10 units in Hollywood that we sold two weeks ago for $1,475,000. Seller is repositioning his equity into other deals while buyer was attracted to the basis in a good location.

The Point

As frustrating as being a landlord in Los Angeles and Pasadena can be today, owners still have options.

The owners seeing the best results are focusing on what they can control: operating expenses, property management, and long-term planning.

And if you're considering a sale, there continues to be active buyer demand for multifamily properties on the Eastside and Pasadena. Our team has closed 12 transactions year-to-date, with 5 properties currently in escrow and 14 active listings.

As always, I'm happy to discuss your property, review operating expenses, or provide an updated valuation.