Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5.2 million sale of a 22-unit apartment property located at 1315 W. 19th Street in Long Beach, California.
Principal Robert Stepp and Senior Vice President Michael Toveg of Stepp Commercial represented the Long Beach-based seller who was in a 1031 exchange. The buyer was a Chino, CA-based private investor. The closing cap rate was 5.4 percent, the price per unit was approximately $236,000, and the gross rent multiplier (GRM) was 12.
“The inventory in this submarket of Long Beach is very low,” said Stepp. “This opportunity provided the buyer with an attractive cap rate as well as an estimated rental upside of 14 percent.”
Toveg added, “Despite the pandemic, the Long Beach market remains resilient as its coastal location and proximity to employment hubs is favorable to the young workforce demographic.”
Built in 1963, 1315 W. 19th Street is situated on an oversized corner lot, and includes two one-bedroom units, 16 two-bedroom units and four three-bedroom units as well as 14 garages, gated access, and on-site laundry facilities. Half of the units were recently fully renovated to include laminate hardwood flooring, custom shaker-style cabinets, quartz countertops, stainless steel appliances, new bathroom tile and modern lighting, ceiling fans and fixtures throughout.