Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $4.05 million sale of a newly renovated 11-unit apartment property located at 2104 E. Florida in Long Beach’s Fourth Street / Retro Row neighborhood. Built in 1948, the property includes 10 one-bedroom units and one studio.
Principal Robert Stepp and Vice President Todd Hawke of Stepp Commercial represented the seller, a Long Beach-based private investor. The buyer was a local private investor who was in a 1031 exchange. The property closed at a 4.8 percent cap rate, a gross rent multiplier (GRM) of 13.8, and a price per unit of just over $368,000.
“When the seller acquired this property several years ago, it was in need of major updates,” said Stepp. “A comprehensive renovation was recently completed that totaled more than $600,000 of capital improvements. Ultimately, this turnkey asset sold at a strong price to a buyer that is planning on a long-term hold.”
Hawke added, “With construction and labor costs rising, turnkey apartment assets like this one are in extremely high demand from buyers as they provide a cash-flowing, stabilized investment.”
Extensive interior unit renovations included the installation of new laminate flooring, custom shaker-style cabinets, quartz countertops, washer/dryers in most units, stainless steel appliances, designer bathroom tile, pedestal sinks, and modern lighting, ceiling fans and fixtures throughout. New exterior and building system renovations were also conducted.
The Fourth Street / Retro Row neighborhood is a desirable location for young urban professionals seeking proximity to employment opportunities in downtown Long Beach, along with a plethora of shopping and dining amenities.