Santa Monica, CA, February 28, 2021 – Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $6.975 million sale of a 16-unit apartment property located at 1901 6th Street in Santa Monica, CA. The asset is situated just six blocks from the ocean and is a short walk to the Santa Monica Pier, Third Street Promenade and Main Street restaurants and shops.
Stepp Commercial Principal Kimberly Stepp represented the seller, a Los Angeles-based private investor, as well as the buyer, a Santa Monica-based private investor. The property closed at a 3.2% cap rate and at a price per unit of approximately $436,000.
Built in 1969, the garden-style property is situated on a large corner lot and features an elevator, laundry room, and a courtyard patio. The unit mix consists of 15 large one-bedroom units and one studio unit. Half of the units were recently renovated to include wood flooring; modern light fixtures; kitchens with shaker cabinets with quartz countertops and dishwashers; and upgraded bathrooms. Some of the units have partial ocean views.
“This property offers the new ownership a prime Santa Monica location and the opportunity to add value by renovating the outdated units,” said Stepp.
Stepp added, “The seller saw this as an ideal point in time to sell this asset and reinvest the equity into one out of state. With interest rates starting to move up and property values at historical highs, many owners are taking advantage of a window of opportunity to capture value in less restrictive states that are experiencing strong job and population growth.”
Santa Monica has become an integral part of Silicon Beach, Los Angeles’ thriving technology, media and entertainment hub. This economic transformation has brought on an increase in a young, affluent, educated population, employed by companies who invest heavily in attracting top-tier talent.