Multi-Generational Ownership Transitions


Property Type: Multifamily


This 6-unit multifamily beach property in Playa del Rey had been in the family for over 50 years. The property was owned in a family trust and the mother had occupied one of the units and managed the property for many years. The mother passed away in 2015 and her three sons, the beneficiaries, inherited the property. The sons were faced with a challenge; do they keep and manage the property or sell the asset. One of the beneficiaries wanted to keep the asset and buy out his brothers, however he did not have the money to do so.


Lineage Asset Advisors was brought in by the estate planning attorney who worked the trustee and the beneficiaries to consult with the family on their options. Lineage Asset Advisors helped to underwrite the asset and provide an opinion of value to help the family determine what their true return on equity and cash flow potential was with this property. Also, Lineage determined the potential costs of capital upgrades which the owners would likely have to incur. After careful consideration and review of all factors including the property itself, the financial upside and the family dynamics it was determined by the family that the best course was to sell the asset.


Lineage Asset Advisors was hired to represent the family and teamed up with a local multifamily market expert to assist in the marketing of the asset. Lineage Asset Advisors worked with the family and their estate planning team to execute on the sale of the property to a local buyer. Ultimately the team was able to achieve a price of $2,875,000 for the 6-unit multifamily property which represents a price per unit of $479,000 per unit. The team also sold the property for $125,000 and 5% more than a similar 6-unit property across the street sold for in 2016.