The Burton Way Sale That Shows What an A+ Location Is Still Worth

What matters

1. $47M at $602K/door.78 units, 86,448 SF, 1989 built. Sale closed May 27, 2026 at a 4.82% cap on in-place NOI of $2,264,228. Five months on market. Seller took a $2M bid-ask cut from the $49M ask.
2. Estimated 13 GRM today. Potentially an 11 GRM asset tomorrow.  Working backwards from the reported NOI implies the property traded around a 13 GRM. If the apartments can eventually average $5.00/SF (assuming ~72,000 rentable SF), gross income would increase to roughly $4.3M annually, bringing the effective GRM down to about 10.9.
3. 1989 built = value-add.  Built in 1989, the property falls under AB 1482, not LARSO. That gives ownership the ability to raise rents up to the state cap on renewals while turning units to market over time. Combined with a premium Burton Way location, this supports turning units, improving the building and getting rents to $5/SF
4. Add this buyer to your watch list.  First Pointe Management Group / The Ezralow Company has been acquiring and operating Southern California real estate since the 1970s. Key principals include Bryan Ezralow, Marc Ezralow, and Gary Freedman. If you sell institutional-quality apartments, add them to your buyer database.  They have done 597M in acquisitions over the last 5 years.