A typical LA multifamily transaction closes in 90 to 150 days from listing agreement signed to keys turned over. Clean deals with strong preparation close faster (60-90 days). Complicated deals with documentation gaps, unpermitted work, or difficult tenant situations close slower (150-200+ days) or at price concessions.
The timeline divides into three roughly equal phases. What you do in the first phase determines the outcomes in the other two.
The first 30 days are pre-listing preparation — assembling documents, addressing condition issues, building the marketing package.
Days 1-10: Document assembly. Rent roll, estoppels, operating statements, RSO registration, capital improvement records, leases, tax returns, loan documents.
Days 11-20: Issue resolution. Close RSO gaps. Address unpermitted work or price transparently. Reconcile operating statements to tax returns. Resolve any tenant documentation problems.
Days 21-30: Presentation. Professional photography. Broker's opinion of value finalized. Marketing package assembled. Final pre-listing walk with broker.
Day 31: list.
Why this phase matters most: The quality of preparation in weeks 1-3 determines the pricing outcome more than any later stage. Surprises found at buyer due diligence are negotiating leverage for the buyer. Clean preparation eliminates most of those surprises.
The next 30-45 days are marketing and offer collection.
Days 31-45: Initial marketing. Broker distributes the marketing package to the buyer pool. Property tours begin. Qualified buyers submit initial interest.
Days 45-60: Offer negotiation. Initial offers submitted. Counters. Buyer pool narrows to 2-4 serious candidates. Terms get refined alongside price.
Days 60-75: Offer acceptance. Final buyer selected. Purchase agreement executed. Earnest money deposited.
What can go wrong here: Pricing too high produces no offers. Marketing that's sloppy produces low-quality offers. A building that's not genuinely ready for scrutiny produces offers that drop out in diligence.
How clean preparation affects this phase: Buildings with meticulous preparation typically receive 3-5 competitive offers in this window. Buildings with gaps receive 0-2 offers and often reduce in price before reaching a clean contract.
The final 45-75 days are escrow.
Days 75-95: Due diligence. Buyer's counsel reviews documents. Inspector walks the property. Buyer's lender begins underwriting. Concessions negotiated on any diligence findings.
Days 95-120: Financing and contingency. Loan commitment. Appraisal completed. Title cleared. Any remaining conditions resolved.
Days 120-150: Closing preparation and close. Final walkthrough. Settlement statement reviewed. Funds wired. Deed recorded.
What can go wrong here: Diligence surprises cause concessions or kill deals. Financing delays push closings past agreed deadlines. Title issues surface on older properties. Seller-side delays on document production erode buyer confidence.
Five factors, in descending order of impact:
Buildings that score high on all five close in 60-90 days.
Five factors that extend timelines:
Buildings with two or more of these factors typically close in 150-200+ days, often with meaningful price concessions.
Pre-1978 LA City RSO buildings often take longer because due diligence requires extensive LAHD compliance review. Budget extra 10-15 days.
Seismic retrofit requirements can trigger inspections and documentation reviews that extend the escrow phase.
1031 exchanger buyers have a 180-day hard deadline on their side — they're motivated closers. Deals with 1031 buyers often close in the 60-90 day range.
Institutional buyers have disciplined diligence timelines. When they commit, they close efficiently. When diligence raises issues, they walk quickly.
Small local buyers and syndicators take longer typically — less sophisticated underwriting infrastructure, slower legal review.
The "how long" question is less about the market and more about how prepared the seller is. A well-prepared LA multifamily building closes in 90 days routinely. A poorly-prepared building drifts into 150-180 days or concedes in escrow.
The 30 days of preparation before listing typically saves 30-60 days in escrow, plus meaningful dollars at close.
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Related reading:
- How to Prepare Your Apartment Building for Sale
- What to Expect During the LA Multifamily Sales Process
- The 6 Mistakes LA Landlords Make When Selling Their Building
Michael Sterman is Senior Managing Director Investments at Marcus & Millichap. $1.41 billion across 254 closed transactions.
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