Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5.04 million sale of a 21-unit apartment property located at 1505 E. 11th Street in Long Beach, California.
Stepp Commercial’s Principal Robert Stepp and Senior Vice President Michael Toveg represented the seller, a Northern California-based private investor. The buyer was a Long Beach-based private investor.
The property closed at a 4.2 percent cap rate and at a price per unit of just over $240,000.
“The seller was looking to exchange out of state for improved tax purposes,” said Stepp. “The buyer liked that this property offers townhouse units which are rare for the local area and may be able to add future value by adding an accessory dwelling unit (ADU).”
Built in 1964, the controlled-access property offers a mix of 10 two-bedroom townhouse units, two two-bedroom units, six one-bedroom units and three studio units around a central courtyard. Seven of the units were remodeled with new flooring, paint, modern fixtures. The property provides onsite laundry facilities, eight garages and one surface space.
Long Beach continues to see development and job growth fundamentals, translating into a strong apartment sector that is currently experiencing a vacancy rate of around 3 percent and rental growth, which attracts capital to the coastal city.