Transaction Story · 1031 Exchange · Long Beach to Tampa, FL
How a Long Beach Investor Traded Nine Aging Buildings for One Institutional Asset in Tampa
Nine 1920s Long Beach Buildings.
Traded for One Institutional Asset in Tampa.
A Long Beach investor owned nine apartment buildings built in the 1920s for almost 40 years. The majority had very small units in original condition, requiring a high level of repairs, maintenance, and hands-on management. Facing significant capital expenditure and a shifting California regulatory environment, the investor turned to Stepp Commercial to exit the portfolio and exchange into a single, higher-quality asset in a high-growth market outside of California.
In a single clean exchange, Stepp Commercial sold all nine Long Beach properties at a 3.6% cap rate and repositioned the equity into Lois Landing in Tampa, Florida. A 56-unit property in an A location, 60% remodeled with high-end condo finishes and resort-style amenities, near major employment hubs, at a 5.5% cap rate.
Sold
Exited
Acquired
Cap Rate
Nine 1920s Buildings. Four Decades of Equity. Time to Move On.
The Long Beach portfolio was a management-intensive collection of small-unit 1920s buildings scattered across the East Long Beach submarket. Aging infrastructure, compressed cap rates, and California's regulatory climate made holding increasingly difficult. The investor needed a path out that protected decades of built equity while improving cash flow and eliminating day-to-day management entirely.
Of ownership across nine 1920s Long Beach buildings, the majority with small units in original condition.
Average cap rate on the Long Beach portfolio at sale, compressed relative to capital required to maintain the aging stock.
Significant capital investment required to modernize electrical, plumbing, and units across all nine properties simultaneously.
Managing nine separate properties across Long Beach meant nine sets of tenants, maintenance calls, and insurance policies.
Stepp Commercial structured the entire portfolio as a single exchange into one replacement property, simplifying everything from day one.
Capital gains fully deferred through the 1031 exchange, protecting the full equity position built over four decades.
Nine Long Beach Properties
to Lois Landing, Tampa, Florida
After selling the entire Long Beach portfolio at a 3.6% cap rate, Stepp Commercial identified a single replacement property in Tampa, Florida: Lois Landing. A 56-unit asset in an A location near major employment hubs, with 60% of units fully remodeled with high-end condo finishes and resort-style amenities. The investor immediately stepped into a professionally managed, institutionally positioned property with significant remaining renovation upside.
9 Properties Sold
Lois Landing
A location near major Tampa employment hubs. 60% of units fully remodeled with high-end condo finishes. Resort-style amenities. Professional property management from day one.
| Factor | Long Beach Portfolio | Lois Landing, Tampa |
|---|---|---|
| Units | 60 Units | 56 Units |
| Total Value | $14,000,000 | $11,000,000 |
| Cap Rate | 3.6% | 5.5% |
| Build Year | 1920s | Modern Renovation |
| Unit Condition | Original | 60% Remodeled |
| Management | Active Self-Managed | Professional 3rd Party |
| Location Grade | C Locations | A Location |
| Capital Gains | Owed on Sale | 100% Deferred |
Lois Landing — Tampa, Florida
From nine aging buildings in Long Beach to one institutional-grade property in Tampa. Lois Landing offered everything the Long Beach portfolio could not: a single address, professional management, resort-style amenities, and significant remaining renovation upside as the remaining 40% of units are brought to the same high-end finish standard.
The Full Picture
One clean exchange. Nine aging Long Beach properties sold, equity fully protected, and the investor stepped into a single institutional asset in a high-growth Florida market with professional management, zero day-to-day responsibilities, and meaningful renovation upside still ahead.
Long Beach
Nine 1920s C-location buildings, small units, high maintenance burden
Improvement
From 3.6% in Long Beach to 5.5% at Lois Landing on day one
Tampa, FL
Single A-location asset, professionally managed, 60% remodeled
Completed
Sold
Paid
Diversification
Handled Start to Finish
by Stepp Commercial
Stepp Commercial managed every step of the process, from the initial portfolio valuation through the final closing on Lois Landing in Tampa. One point of contact throughout, with over 100 exchanges completed and the expertise to identify the right replacement asset in an unfamiliar market under strict IRS timelines.
Ready to Exchange Out of California?
Stepp Commercial has completed over 100 exchanges for California multifamily investors. Whether you are looking at Tampa, Phoenix, or another high-growth market, one conversation is all it takes.
Get a Free Portfolio Review1.866.99.STEPP · [email protected] · CA Brokerage License No. 02325250