Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5.735 million sale of a historic 25-unit apartment property located at 330 Cedar Avenue in the West Gateway submarket of downtown Long Beach, CA.
Principal Robert Stepp and Senior Vice President Michael Toveg of Stepp Commercial represented the seller, a Long Beach-based private investor. The buyer was a Los Angeles-based private investor. The closing cap rate was 3.9 percent, the price per unit was approximately $229,400, and the gross rent multiplier (GRM) was 14.9.
Built in 1915, 330 Cedar Avenue is a three-story property comprised of 20 studio units, four one-bedroom units and one three-bedroom unit. In addition to offering the charm and character of hardwood floors, wood built-ins and crown molding, fifteen of the units were fully renovated in 2019/2020 to include new tile and cabinets in kitchens and bathrooms, granite countertops, modern faucets and lighting fixtures.
“The downtown Long Beach area continues to be coveted by apartment investors as jobs and population growth continues,” said Stepp. “The buyer liked the upgraded property and plans on holding long-term. The seller is looking to increase cash flow by exchanging into an out-of-state asset.”
The property is within walking distance to a diverse set of employment opportunities as well as Pine Avenue, The Pike and other local attractions.
The West Gateway area is one of downtown Long Beach’s six historic neighborhoods and is the center of finance and government. The area is home to the Long Beach Civic Center, the World Trade Center, the County’s George Deukmejian Courthouse and many of the city’s office high-rises and other government buildings. With an array of housing options, residents enjoy easy access to their offices and walkability to all of downtown’s offerings.