1031 Exchange Success: Multifamily Investment Volume Rebounds in Buena Park

The recent sale of a 28-unit multifamily property at 7051 9th Street in Buena Park, California, for $9.8 million has caught the attention of the real estate market. This transaction, valued at approximately $350,000 per unit, is notable not just for its price but because both the buyer and seller successfully completed 1031 exchanges. Managed by Matthews Real Estate Investment Services, this closing on December 30, 2025, showcases how strategic planning in real estate can lead to successful outcomes even amidst fluctuating market dynamics.

The significance of this transaction extends beyond its price tag. The multifamily investment landscape in the U.S. is showing signs of recovery, with annual investment volumes rising by 9.1 percent in 2025 to reach an impressive $161.6 billion, as reported in CBRE’s Q4 2025 Multifamily Figures report. This uptick comes at a time when vacancy rates are increasing and new construction is outpacing demand in various markets, indicating a rare resilience in investment activity despite adverse conditions.

One of the unique aspects of this transaction arose from a partnership dissolution. Both parties sought to utilize a 1031 exchange to redeploy their capital effectively. Matthews leveraged its marketing expertise to generate an impressive 11 offers for the property over several months. This created an environment where the sellers could select the most advantageous buyer, increasing the likelihood of a successful closing. Mark Bridge, the Executive Vice President and Senior Director of Multifamily at Matthews, played a crucial role in guiding this dual-exchange transaction, which could have easily become complicated without the right oversight.

Despite challenges such as shifting market fundamentals—including a reported negative net absorption of 8,300 units in Q4 2025—investment activity remained strong. CBRE noted that Q4 2025 multifamily investment volumes reached $49.5 billion, the highest in three years, marking a 9.5 percent quarter-over-quarter increase. The multifamily sector also commanded a 34 percent share of the total commercial real estate investment volume during this period, demonstrating its importance and resilience in today’s market.

Both parties faced complex logistical hurdles. The buyer needed to sell a smaller property to finance the 1031 exchange for the Buena Park property, while the seller was in the market for an up-leg property. Matthews structured the deal with flexible closing dates and extensions, facilitating compliance with IRS guidelines for tax-deferred exchanges. The buyer successfully sold their existing property during the escrow period, which allowed them to close the deal on the 28-unit multifamily property promptly.

Looking to the future, the buyer has plans to implement a renovation program to enhance the property’s cash flow and long-term value. This aligns with broader market trends, as investors increasingly seek value-add opportunities in stable secondary markets. While primary markets, such as New York and Los Angeles, maintained a significant share of multifamily investment volume in 2025, secondary markets like Buena Park are emerging as attractive options for buyers looking for better price-to-rent ratios.

As the market adjusts, with construction completions projected to moderate in 2026, occupancy rates may improve, supporting rent growth. This transaction illustrates that well-structured deals can succeed, even in uncertain environments. Both parties successfully met their investment goals through effective collaboration and representation, highlighting the importance of skilled guidance in complex real estate transactions.

In summary, the recent Buena Park multifamily transaction serves as a notable example of how careful planning and strategic positioning can yield success in real estate investments, particularly amidst fluctuating market conditions. The growing interest in smaller multifamily properties, along with a resilient investment landscape, provides homeowners and investors a myriad of opportunities for future growth and asset diversification.