Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the approximately $4.38 million sale of 1316-1322 E. 3rd Street in the desirable Alamitos Beach neighborhood of Long Beach, CA. The asset sold at full asking price.
Principal Robert Stepp and Vice President Todd Hawke represented the seller, Santa Monica-based VMG Properties. The buyer was Los Angeles-based North LLC. The property offers a desirable mix of four one-bedroom and eight two-bedroom units. Nine of the 12 units are fully renovated, including new flooring, modern kitchens and baths, in-unit laundry, and upgraded fixtures throughout. A particularly valuable feature is the ample parking—20 spaces, with 16 covered spaces and two, two-car garages in a neighborhood that is scare on parking.
The property is a 12-unit, two-building apartment property comprising a four-unit front building built in 1920 and an eight-unit rear building built in 1989. The price per unit was $364,583 at a 4.8 percent cap rate with a GRM of 14.0.
“This property provides an excellent investment opportunity for owning an attractive asset in one of the most desirable rental locations in Long Beach with the potential to increase income without any heavy renovations or unit turnovers,” said Stepp. “This submarket commands rents that are approximately 19 percent higher on average than other Long Beach neighborhoods.”
In addition to being just three blocks to the beach, bike path and ocean, the prime Alamitos Beach location gives tenants easy access to trendy shopping and dining locations, including Fourth Street, Retro Row, the East Village, and Downtown Long Beach. Long Beach will soon break ground on a $9 million concession stand project at Alamitos Beach, creating a beachfront that will rival any other on the world-renowned Southern California coast.