Los Angeles, Calif. January 6, 2021 – Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $6.6 million sale of a 22-unit apartment property located at 1518 E. 3rd Street in the prime Alamitos Beach submarket of Long Beach, CA.
Principal Robert Stepp and Senior Vice President Todd Hawke of Stepp Commercial represented the seller, a Long Beach-based private investor. The buyer was a Long Beach-based private investor who was in a 1031 exchange. The closing cap rate was 4.8 percent, the price per unit was $300,000, and the gross rent multiplier (GRM) was 13.4.
Built in 1964 the property features 19 one-bedroom units and three two-bedroom units. Seventeen of the units are fully renovated and include new flooring, modern kitchens and baths and upgraded fixtures. A majority of remodeled apartments have in-unit washer/dryers. The property also offers on-site laundry, 14 subterranean and 2 surface parking spaces.
“This property attracted a number of interested buyers as it offered a rental upside, recent upgrades to the majority of units, and it is in the coveted Alamitos Beach location just three blocks to the ocean and bike path,” said Stepp. “Overall, this neighborhood has experienced historically low vacancy rates and rents run about 19 percent higher than other Long Beach submarkets.”
The property is close to the hip boutiques, restaurants and bars along Fourth Street/Retro Row and along the Broadway Corridor and is also convenient to East Village Arts District, Downtown Long Beach and a myriad of employment opportunities.