Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $4.4 million sale of a 20-unit apartment property located at 737 W. 5th Street in Long Beach. The property is walking distance to downtown.
Principal Robert Stepp and Senior Vice President Michael Toveg of Stepp Commercial represented the seller, Long Beach-based Keely Partners, LP, and the buyer, Santa Monica-based Hollywood Properties, LP. The property sold for $220,000 per unit and at a cap rate of 4.4 percent.
Built in 1963, the asset is situated on a 12,059-square-foot lot in the Willmore City Historic District, across from Caesar Chavez Park and in walking distance to downtown Long Beach and its numerous cafes, restaurants, boutiques and theatres. The unit mix consists of 11 one-bedroom units and nine two-bedroom units, all surrounding a landscaped courtyard. Fifteen of the 20 units were recently renovated by the seller to include new hardwood floors, custom kitchen cabinetry, new bathroom vanities and modern fixtures.
“The seller purchased property in 2015 for $2.7 million and invested more than $450,000 in renovations and sold it now at a 52 percent return,” said Stepp. “The new ownership plans to conduct additional renovations which are expected to yield approximately 10 percent in additional rental upside.”
Toveg added, “Apartment assets in and near downtown Long Beach are highly coveted by investors as the billions of dollars of development activity in downtown are creating an amenity-rich environment that renters want to be close to.”
About Stepp Commercial: Stepp Commercial is a brokerage firm specializing in the multifamily property sector. Stepp Commercial’s mission is to provide apartment owners with a fully integrated sales platform that includes comprehensive market knowledge and local real estate expertise to successfully complete any type of multifamily transaction. For more information visit steppcommercial.com