Multi-family Home Transaction Story — 1031 Exchange
California Rent Control Exit Strategy:
$50.3M Multifamily 1031 Exchange to Phoenix
A Long Beach investor needed one broker to sell 16 apartment buildings simultaneously and redeploy $50.3 million into Phoenix within the 1031 exchange window. Stepp Commercial closed every property in six months.
16-Property Long Beach Multifamily Portfolio Sold for $50.3M in a 1031 Exchange
A Long Beach investor with 16 apartment buildings across the city wanted to strategically reposition their portfolio into a higher-yielding market. Stepp Commercial executed a complete portfolio sale and 1031 exchange into Phoenix in six months.
Discuss Your Exchange
A Portfolio Built Over Years. Time to Optimise.
After years of building a 16-property multifamily portfolio across Long Beach, a seasoned California investor decided the timing was right to make a strategic move. The portfolio was performing well, the properties were in good shape, and the Long Beach market had delivered strong appreciation.
With capital gains exposure, an evolving regulatory environment, and the opportunity to access higher-yielding markets outside California, the investor engaged Stepp Commercial to execute a full portfolio exit through a 1031 tax-deferred exchange.
Exit the Long Beach portfolio at full value and redeploy all equity into a market offering stronger cap rates, continued rental demand growth, and a less complex regulatory landscape for multifamily owners.
Executing 16 simultaneous transactions while identifying and securing replacement properties within the strict IRS 1031 exchange window required a broker with deep market reach, coordinated execution, and a proven track record at scale. They chose Robert Stepp.
Thinking About Repositioning Your California Portfolio?
Whether the timing is right now or you are planning ahead, Stepp Commercial can help you understand your options and model what a 1031 exchange could look like for your specific situation.
Why the Numbers Made Sense to Move
The decision to exchange was grounded in data. California multifamily cap rates were compressing in many submarkets while Phoenix was offering meaningfully stronger yields, strong population growth, and continued demand from a growing renter base.
Long Beach - a market that delivered strong appreciation over the holding period
Well-maintained value-add stock across multiple Long Beach neighborhoods
A Simultaneous Two-Market Exchange at $50.3M
Stepp Commercial engineered a complete portfolio disposition and simultaneous acquisition - selling 16 properties in Long Beach and redeploying all proceeds into four apartment communities in Phoenix. Total value across both legs: $50.3 million.
Long Beach Portfolio
Phoenix Portfolio
Six Months. Sixteen Closings. Zero Misses.
Executing a portfolio of this scale required meticulous sequencing - pricing, marketing, and closing 16 properties while simultaneously identifying and securing the Phoenix upleg within the 1031 exchange window.
Portfolio Assessment & Exchange Structuring
Stepp Commercial conducted a full portfolio valuation across all 16 properties, assessed market timing, structured the exchange timeline, and engaged a Qualified Intermediary to hold proceeds within IRS 1031 guidelines.
Valuation & QI SetupSimultaneous Off-Market & On-Market Outreach
All 16 properties were marketed concurrently using Stepp Commercial's established investor network - a combination of off-market presentations to known buyers and targeted outreach to qualify new investors efficiently.
16 Properties ActiveProperties Enter Escrow in Coordinated Waves
Offers were received, negotiated, and accepted across the portfolio in coordinated batches - ensuring no single transaction fell out of sync and the exchange timeline remained intact throughout.
Staggered Escrow OpensPhoenix Acquisitions Identified & Under Contract
Working in parallel, Stepp Commercial's network identified four Phoenix apartment communities matching the investor's yield targets. Contracts were executed on Sereno Townhome, Turney, Cactus Canyon, and Morten Apartments.
4 Phoenix Properties SecuredAll 16 Properties Closed. Exchange Complete.
Every Long Beach property sold. Every Phoenix acquisition funded. All proceeds transferred within the 180-day exchange window. The investor exited with equity fully intact and zero tax recognition on the transaction.
16/16 Sold · 100% Exchange CompleteEvery Property. Full Value. Six Months.
From 9-unit buildings to 36-unit complexes, Stepp Commercial brought all 16 Long Beach properties to market and closed every single one within the 1031 exchange window - spanning multiple neighborhoods and price points.
| # | Location | Units | Sale Price | Price / Unit | Status |
|---|---|---|---|---|---|
| 01 | Long Beach, CA | 36 | $5,730,000 | $159,167 | Sold |
| 02 | Long Beach, CA | 27 | $4,500,000 | $166,667 | Sold |
| 03 | Long Beach, CA | 22 | $4,075,000 | $185,227 | Sold |
| 04 | Long Beach, CA | 20 | $4,550,000 | $227,500 | Sold |
| 05 | Long Beach, CA | 20 | $3,375,000 | $168,750 | Sold |
| 06 | Long Beach, CA | 17 | $3,590,000 | $211,176 | Sold |
| 07 | Long Beach, CA | 16 | $3,380,000 | $211,250 | Sold |
| 08 | Long Beach, CA | 16 | $3,190,000 | $199,375 | Sold |
| 09 | Long Beach, CA | 16 | $2,650,000 | $165,625 | Sold |
| 10 | Long Beach, CA | 14 | $2,350,000 | $167,857 | Sold |
| 11 | Long Beach, CA | 12 | $2,500,000 | $208,333 | Sold |
| 12 | Long Beach, CA | 12 | $2,490,000 | $207,500 | Sold |
| 13 | Long Beach, CA | 12 | $2,340,000 | $195,000 | Sold |
| 14 | Long Beach, CA | 10 | $2,085,000 | $208,500 | Sold |
| 15 | Long Beach, CA | 10 | $1,980,000 | $198,000 | Sold |
| 16 | Long Beach, CA | 9 | $1,580,000 | $175,556 | Sold |
| Portfolio Total | 269 units | $50,345,000 | ~$187k avg | ||
Own a Multifamily Portfolio in Los Angeles?
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Into Phoenix: Stronger Yields, Growing Market
All proceeds were redeployed into four established apartment communities in the Phoenix metro area - capturing a 130-basis-point improvement in cap rate and entering a market with strong population growth, healthy rental demand, and a landlord-friendly operating environment.
Sereno Townhome Apartments
Turney Apartments
Cactus Canyon Apartments
Morten Apartments
Robert Stepp was the only agent we felt confident in pulling off all transactions at roughly the same time for our 1031 exchange. Robert and his team sold every property within six months and we were all pleased with the results.
Every Objective. Achieved.
This transaction stands as one of the most complex portfolio dispositions Stepp Commercial has executed. Every property sold, every deadline met, and capital fully redeployed into a market with strong fundamentals and a clean operating environment.
The Team Behind This Transaction
What Could Your Portfolio
Look Like in 6 Months?
A Long Beach investor came to us with 16 properties and a clear goal. They left with a fully executed $50M exchange and capital working in a stronger market. What is your situation?