Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $2.32 million sale of an 8-unit apartment property located at 3011 E. 4th Street in the heart of the 4th Street / Retro Row submarket of Long Beach, Calif.
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 Long Beach-based private investor. The closing cap rate was 4.4 percent, the price per unit was $290,000, and the gross rent multiplier (GRM) was 14.6.
Built in 1963, the well-maintained, two-story building is comprised of seven two-bedroom units and one three-bedroom unit. Three of the units have been completely renovated with new hardwood flooring, quartz countertops, stainless steel appliances, bathroom tile and vanities, and modern fixtures throughout. Additionally, the property offers four garages and four driveway spaces, and beautiful landscaping.
“This property is located within one of Long Beach’s most popular rental markets as it is within walking distance to a number of retail shops, restaurant and bars,” said Stepp. “The seller is looking to trade out of this asset into a larger out-of-state property.”
Toveg added, “The buyer plans on adding value by renovating the five units that haven’t been updated. Over the long-term, this asset is poised to continue to appreciate and capture strong rents.”
The eclectic, hip, 4th Street / Retro Row submarket of Long Beach has developed into a bustling, walkable neighborhood offering many dining, nightlife and retail amenities, and is a popular destination for its selection of independent vintage and contemporary clothing, furniture, home goods, skateboard shops, art and antiques galleries, as well as locally-owned restaurants, coffee shops and wine bars.