“The best time to plant a tree was 20 years ago. The second best time is now.” — Chinese Proverb
If you’ve been sitting on the fence about selling your multifamily property, the numbers that just came out should get your attention.
Los Angeles multifamily cap rates rose again in the second quarter of 2026 — the sixth quarter in a row they’ve climbed — landing at 5.37%. At the same time, the average price per unit across the metro sat at $308,551.
WHY THIS MATTERS rising cap rates generally mean property values are cooling. And on July 29, the Federal Reserve held interest rates steady at 3.50%–3.75%, with several Fed officials actually pushing for a rate increase to fight inflation that’s stayed above target for more than five years. Markets aren’t expecting relief anytime soon — we’re likely looking at a “higher for longer” environment on financing costs.
WHAT THIS MEANS IF YOU OWN MULTI FAMILY PROPERTY If you’ve been waiting for rates to drop before you sell, that wait may end up costing you more than it saves you. Values tend to soften as cap rates rise, and there’s no clear signal borrowing costs are coming down soon. Locking in today’s value may be worth more than betting on tomorrow’s rate cut.
THE OTHER SIDE OF THE COIN if you’re in a position to buy, higher cap rates can mean better going-in yields for well-priced properties — worth having a conversation about before the market shifts again.
WHAT WE CAN DO TO HELP Whether you’re weighing a sale now or want a clear-eyed read on what your property is worth in today’s market, we’ll walk the numbers with you — no pressure, no guesswork. A quick call costs you nothing and gives you a real answer.
Reach out anytime — we’re here to help you make the right move at the right time.
Yours truly,
Steve Gamez
Broker
PRS Properties
714-328-0832-cell
“There is no wrong time to do the right thing.” Charles M. Blow
WHAT WE AT PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.
If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.
We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.
Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 45 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.
Leave A Comment