Kidder Mathews broker Nathan Shaolian successfully completed a $12,710,000 1031 exchange on behalf of a West Los Angeles multifamily investor, repositioning capital from two regulated apartment properties into two brand new net-leased retail and medical assets in Tennessee.
The exchange included the sale of:
- 11296 Brookhaven Avenue, Los Angeles, California – a 12-unit multifamily property that sold for $3,100,000
- 3651 McLaughlin Avenue, Los Angeles, California – a 10-unit multifamily property that sold for $3,260,000
Shaolian exclusively represented the seller, Kevin Barnes, in both sales. On the Brookhaven closing, he also represented the buyer, and the deal closed without a retrade.
The proceeds were reinvested into:
- A 2,540-square-foot brand new Starbucks at 1500 W Main Street, Lebanon, Tennessee, acquired for $3,100,000
- A 3,726-square-foot newly constructed Fast Pace Health Urgent Care at 3813 N Old Port Royal Road, Spring Hill, Tennessee, acquired for $3,250,000
Shaolian represented the buyer in both acquisitions, working alongside listing agents Adam Friedlander of Colliers and Kaveh Ebrahimi of Keller Williams. Friedlander also served as co-representative to the buyer on the Fast Pace Health transaction.
After evaluating options, the client elected to exchange the Los Angeles rent-controlled multifamily assets in favor of fully passive, out-of-state net-leased assets secured by long-term tenants. The strategy prioritized predictable cash flow, simplified ownership, and improved financing terms.
“This transaction reflects what we’re seeing across Los Angeles,” said Shaolian. “Many multifamily owners are reassessing the long-term upside of regulated assets and looking for opportunities that provide stronger income certainty and fewer operational demands. For this client, transitioning into brand-new NNN retail and medical properties provided greater peace of mind and improved overall returns.”
The transactions were competitive and fully marketed. Shaolian leveraged the certainty of a 1031 buyer to outperform higher offers on both replacement properties and close three months ahead of the exchange deadline.
Shaolian managed the exchange process end-to-end—securing strong pricing on the multifamily dispositions, identifying and negotiating the replacement assets once the properties were non-contingent, coordinating strict 1031 timelines, and arranging favorable financing for the acquisitions. This portfolio shift underscores a broader trend of Los Angeles multifamily owners reallocating capital into out-of-state net-leased retail and medical investments to reduce regulatory exposure while maintaining strong income performance.
About Kidder Mathews
Kidder Mathews is the largest fully independent commercial real estate firm in the Western U.S., with over 900 professionals in 19 offices across Washington, Oregon, California, Nevada, and Arizona. We offer a complete range of brokerage, appraisal, asset services, consulting, and debt & equity finance services for all property types. Kidder Mathews averages $9 billion in transaction volume, manages more than 54 million square feet of space, and conducts nearly 2,700 appraisal, consulting, and cost segregation assignments annually. For more information, visit kidder.com.
