Stepp Commercial has completed the $9.8 million acquisition of Twin Palms, a 17-unit apartment property located at 136 Cliff Drive and 145 Cedar Way in Laguna Beach, CA.
Senior Vice President Todd Hawke and Principal Robert Stepp and of Stepp Commercial represented the buyer, a Long Beach-based private investor. The seller was a Laguna Beach-based private investor who had owned the property for 60 years. The closing cap rate was 3.2 percent.
Built in 1956, the two-building trophy property is located north of Laguna Canyon Road and east of Pacific Coast Highway and is walking distance to Laguna’s main beach, Laguna Village, and Pageant of the Masters, among a number of other nearby amenities. The asset offers a mix of one- and two-bedroom units and features a courtyard with gardens, two sun decks and ocean views. The majority of the units were recently upgraded.
“Our buyer client was exchanging out of C-grade asset in Phoenix and wanted to invest into a long-term class A apartment property,” said Hawke. “This asset presented the opportunity to own in an irreplaceable coastal Southern California location. Additionally, there is an upside for the buyer who plans on making additional in-unit and exterior upgrades and will bring rents up to market rates over time.”