Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $3.175 million sale of a 10-unit apartment property located at 310 West 8th Street within the Willmore City Historic District of downtown Long Beach, California.
Principal Robert Stepp and Vice President Mark Witsken represented the Long Beach-based seller, a private investor. The buyer was a Los Angeles-based investor who was in a 1031 exchange. The closing cap rate was 5.2 percent and the gross rent multiplier (GRM) was 12.9.
“The buyer owns other nearby apartment assets. This meticulously renovated property was a perfect addition to their portfolio,” noted Witsken.
Built in 1929, the three-building, two-story property includes four two-bedroom units and six one-bedroom units. Nine of the spacious units were recently renovated to include high-end finishes and fixtures, in-unit washer/dryers, and recessed lighting among other upgrades. The property is within downtown’s up-and-coming Willmore City Historic District and is accessible to job centers along with retail, dining and entertainment amenities. Additionally, the 7th Street entrance to the 710 freeway is just around the corner from the property.
“Our seller client opted to sell this asset and trade into an out-of-state property. This has been an increasing trend lately as long-time landlords seek out more tax-friendly markets such as Arizona, Florida and Texas to create future upside,” said Stepp.