A short hold is a multifamily strategy targeting 2-5 year ownership with active value creation (renovation, rent capture, operational improvement) and planned sale at exit.
Short-hold strategies are value-add or opportunistic by nature. Investor acquires, executes a defined business plan, then sells at stabilized or improved metrics. Tax efficiency is lower than long hold (capital gains at sale; no step-up benefit), but equity velocity is higher.
Short-hold LA multifamily has faced headwinds in 2024-2026: cap rate expansion reduced residual values, RSO constraints limited rent capture speed. Many 2021 short-hold acquisitions are extending into longer holds than originally planned.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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