Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $6.25 million sale of Sandy Bay Beach Suites, an 11-unit apartment property located at 1401 Palisades Beach Road in Santa Monica, CA. Just steps from the sands of Santa Monica beach, the asset sold for a high price per square foot of $1,308.
Principal Kimberly Stepp represented the seller, a Los Angeles-based private investor, and the buyer, a Los Angeles–based private investor. The cap rate was 4.7% percent, the gross rent multiplier (GRM) was 14.6, and the price per unit was just over $568,000.
“With its irreplaceable beachfront location, Sandy Bay Beach Suites offers the new ownership a rare opportunity to own a turnkey asset with vintage charm, modern upgrades, ample natural light and breathtaking ocean views,” said Stepp.
The property was built in 1912 and features a large beach-front patio with a jacuzzi and fully functioning kitchen including a Viking grill and other stainless-steel appliances. The unit mix includes one four-bedroom unit, five one-bedroom units and five studios. All units have been renovated and include hardwood floors, skylights and other upgrades. The property also offers 22 permitted parking spaces.
At the epicenter of Silicon Beach, Santa Monica is home to world-class technology, media and entertainment companies such as Google, Facebook, Hulu, Electronic Arts, among many others, providing a renter pool of high-income professional renters.