Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5.3 million sale of Casa 2055 Apartment Homes, a newly renovated, 13-unit multifamily property located at 2055 E. 3rd Street in the Bluff Heights neighborhood of Long Beach.
Principal Robert Stepp and Vice President Todd Hawke of Stepp Commercial represented the seller, a Los Angeles-based private investor, and the buyer, a Los Angeles-based partnership who was in a 1031 exchange. The closing cap rate was 4.3 percent and the gross rent multiplier (GRM) was 16.0.
Built in 1927 and featuring Modern Spanish-style architecture, the property is situated on a 9,400-square-foot lot. The two-story property includes six studios, six one-bedroom units and one two-bedroom unit. All the newly remodeled units include a washer/dryer, and luxury finishes and upgrades. The property also features open-air hallways and walkways, and a landscaped common courtyard, providing a residential indoor-outdoor ambiance.
“The seller is a syndication/investor group who invested more than $600,000 in capital to execute a major renovation of this highly attractive property in a very desirable Long Beach location,” said Stepp.
Hawke added, “The buyer liked this fully stabilized, turnkey property with a proven property manager, reducing the hassle of day-to-day responsibilities. Casa 2055 is a unique asset that is expected to experience strong tenant demand, rent growth, and appreciation well into the future.”
The property is located in Bluff Heights, a neighborhood popular with young urban professionals and families. Nestled between Alamitos Beach and Belmont Heights, the property is walkable to the dining and shopping amenities along 4th Street / Retro Row and the area offers residents a plethora of nearby outdoor recreation and cultural destinations.