Seismic retrofit is the structural upgrade of older buildings to meet modern earthquake resistance standards. Required for many LA soft-story and non-ductile concrete buildings under municipal mandate.
Retrofits typically involve adding shear walls, moment frames, or steel bracing to buildings that would otherwise fail in a significant earthquake. Costs run $60,000 to $250,000+ per building depending on size and complexity. LA City's soft-story ordinance has been retrofitting pre-1978 wood-frame residential construction since 2016.
For LA multifamily sellers, retrofit status is a first-page diligence item. Completed retrofits trade at tighter cap rates and close cleaner. Pending or refused retrofits are price concessions. If you own pre-1978 inventory and haven't verified your retrofit status, do it before listing.
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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