Front of 540 N Orlando Avenue, West Hollywood
Net proceeds are what remains from an apartment building’s sale price after loan payoff, selling costs and closing adjustments. In Los Angeles, the estimate should account for transfer taxes, including Measure ULA where applicable, commission, escrow and title fees, any loan prepayment penalty, and prorations. A seller net sheet brings those items together. It is a planning estimate, not a guaranteed closing amount or a personal tax calculation.
If you are asking, “What will I actually keep when I sell my apartment building?” start with the building’s likely value and your own obligations. A higher asking price alone does not answer that question.
Start With a Supportable Sale-Price Range
The first line of a net sheet needs evidence. Begin with your current rent roll and trailing 12-month income and expense statement, or T-12. Review income, expenses, condition and applicable rent rules alongside comparable closed sales. Keep in-place income separate from projected rent upside.
Our guide to apartment building comps in Los Angeles explains how to judge those comparisons. A citywide average or an unrelated nearby sale is not a substitute for a building-specific pricing range.
Ask to see estimated proceeds at different points within that supported range. Keep the cost assumptions visible in each version. That makes it easier to understand whether a change in the bottom line comes from price, transfer taxes or another item.
Front of 1316 and 1322 South Centinela Avenue, West Los Angeles
Read the Net Sheet Line by Line
A useful starting structure is:
Estimated sale price − loan payoff − transfer taxes − commission − escrow and title fees − any prepayment penalty, adjusted for prorations and agreed credits = estimated closing proceeds.
This is a framework, not a fixed fee schedule. Review the following categories rather than assuming a single percentage covers everything.
Loan payoff and any prepayment penalty
Include the loan payoff and determine whether a prepayment penalty applies. Our selling guide lists both when describing the seller net sheet. Do not leave either line out simply because the valuation focuses on the building’s income and comparable sales.
Ask which payoff information supports the estimate and which amounts still need confirmation. The point is to identify the obligation, not to treat an early estimate as the final closing figure.
Commission, escrow and title
Commission is negotiated, not set by law. Use the terms proposed for your transaction rather than an assumed market-wide commission percentage. Escrow and title fees also belong on the sheet as separate items.
Ask which amounts have been confirmed and which remain estimates. A clear net sheet should make those distinctions easy to see; a combined “selling expenses” line can hide questions you still need answered.
Prorations and negotiated credits
Our selling guide identifies prorations of rent, deposits and property taxes at closing. These adjustments belong in the review alongside the larger deductions. Ask escrow to explain how they appear in your transaction rather than treating the gross price less the loan as spendable proceeds.
Inspection issues can also lead to a proposed credit or repair. Review the effect on proceeds before agreeing. An offer’s original price does not tell you what remains after later negotiations.
Confirm Whether Measure ULA Applies
Measure ULA applies inside the City of Los Angeles, not throughout Los Angeles County. A Los Angeles mailing address is not proof of city jurisdiction. Confirm the parcel’s jurisdiction before putting a ULA charge—or no ULA charge—on the net sheet.
For sales closing July 1, 2026 through June 30, 2027, the site’s published ULA guide lists:
- 4% on the full sale price for sales over $5,400,000 and below $10,900,000.
- 5.5% on the full sale price for sales of $10,900,000 or more.
ULA is added to the regular city and county transfer taxes. The selling guide lists the City of Los Angeles base tax at 0.45% and the County tax at 0.11%. Confirm the applicable charges for your property and closing date with escrow and your advisors.
The important distinction is that ULA is charged on the entire price once the applicable threshold is crossed, not just the amount above it. Near a threshold, ask for separate net sheets rather than assuming every increase in price produces a matching increase in proceeds.
Separate cities such as Burbank, Glendale, Beverly Hills and West Hollywood are not subject to ULA, though other transfer taxes may apply. Our Measure ULA guide for apartment sellers explains jurisdiction and the published thresholds. Those thresholds are inflation-adjusted; use the period in which the sale closes, not simply the year you list.
Front of 12015 Kling Street, Valley Village
Compare Offers on Net Proceeds and Terms
Compare each qualified offer using the same cost categories. Then look beyond the estimated proceeds to financing, deposit, due diligence, contingencies and closing terms. Our Los Angeles apartment selling guide explains how these decisions fit into marketing and escrow.
A larger headline offer is not automatically the stronger transaction. Ask what must happen before the buyer can close and what remains open to negotiation. If an inspection leads to a requested credit, revisit the net sheet rather than evaluating the credit in isolation.
Keep the price comparison and the terms comparison together. Neither an attractive net estimate nor a short proposed schedule makes uncertain assumptions disappear.
Separate Closing Proceeds From Tax Planning
A brokerage net-proceeds estimate is not a personal tax opinion. Do not assume the closing amount answers every question about what you can retain or reinvest. Review your plans with your CPA and attorney before deciding how the sale fits your next step.
If you are considering another investment property, discuss a 1031 exchange for Los Angeles apartment owners before listing. This article does not determine whether your transaction qualifies. A 1031 exchange does not avoid Measure ULA: the site’s ULA guide distinguishes income tax on gain from the transfer tax on the deed.
Keep the net sheet and the tax discussion connected, but do not mistake one for the other.
Request a Building-Specific Net-Proceeds Review
Request a free, confidential property valuation or call (310) 401-1559. Start with the property address and unit count; a current rent roll and T-12 allow a more detailed review. David Saghian of The Saghian Group at Lyon Stahl will walk you through a pricing range and an estimated net-proceeds sketch. There is no obligation to sell.
Bring questions about loan payoff, any prepayment penalty and your next investment or cash-out goals to that conversation. Ask what is verified, what is estimated and what needs review by escrow or your advisors before you rely on the bottom line.
This is general planning information, not legal or tax advice. Confirm taxes, fees and transaction-specific obligations with your attorney, CPA and escrow provider. A valuation is not a guaranteed sale price.
Frequently Asked Questions
How do I estimate net proceeds from selling an apartment building?
Start with a supportable sale-price range, then subtract loan payoff, transfer taxes, commission, escrow and title fees, and any loan prepayment penalty. Adjust for prorations and agreed credits. The result is an estimated closing amount, not a personal tax calculation.
Is there a fixed commission percentage for selling a Los Angeles apartment building?
No. Commission is negotiated, not set by law. Use the terms proposed for your transaction in the net sheet rather than assuming a standard percentage.
Is Measure ULA charged only on the amount above its threshold?
No. Once the applicable threshold is crossed, Measure ULA applies to the full sale price. It applies only inside the City of Los Angeles and is added to regular city and county transfer taxes. Confirm the threshold for your closing date.
Does a 1031 exchange eliminate Measure ULA?
No. A 1031 exchange does not avoid Measure ULA. The exchange concerns income tax on gain, while ULA is a transfer tax on the deed. Review your transaction with qualified tax and legal advisors before listing.