Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $20.6 million portfolio sale of two nearby apartment properties totaling 43 units in prime Santa Monica neighborhoods. Both properties are near Montana Avenue and are within walking distance to Santa Monica Beach, Santa Monica Pier and Third Street Promenade shops and restaurants.
Principal Kimberly R. Stepp and Vice President Darin Beebower of Stepp Commercial represented the seller, a Los Angeles-based family trust. Stepp also represented the two individual buyers who were both Los Angeles-based private investors.
“Both properties are located in highly desirable Santa Monica locations, and are pride-of-ownership assets that offered the buyers approximately 50 percent rental upside and the potential to renovate and reposition them,” said Stepp.
The first property was built in 1972 and is located on .34-acres at 1115 14th Street north of Wilshire Blvd. The three-story building includes one four-bedroom penthouse unit, two three-bedroom units, 14 two-bedroom units and five one-bedroom units. The property sold for $11.7 million (approximately $532,000 per unit) and at a cap rate of 3.46 percent.
The second property was built in 1957, and is located on a prime double corner lot at 855 6th Street and the corner of Idaho Avenue. The two-story building features an Art Nouveau style entryway, oversized units, ample parking, on-site laundry, and all units include hardwood floors. The unit mix includes two three-bedroom units, six two-bedroom units and 13 one-bedroom units. The property sold for $8.88 million (approximately $423,000 per unit) and at a cap rate of 2.3 percent.