A long hold is a multifamily investment strategy emphasizing 10+ year ownership. Prioritizes stable cash flow, Prop 13 basis preservation, and eventual stepped-up basis over active value creation.
Long-hold strategy emphasizes buying well-located, stabilized properties and owning through multiple cycles. Returns come primarily from rent growth over time, debt paydown, and appreciation — with Prop 13 assessed-value cap maximizing tax efficiency.
Many of LA's most successful multifamily families are long-hold operators. The combination of Prop 13 protection, location-driven appreciation, and eventual stepped-up basis produces powerful multi-decade compounding. Not the right strategy for every owner — requires stable cash flow and long time horizon.
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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