LONG BEACH, CA – Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5 million sale of a 24-unit apartment property located at 1867 Temple Avenue in Signal Hill, a city completely surrounded by Long Beach.
Principal Robert Stepp and Senior Vice President Michael Toveg of Stepp Commercial represented the Long Beachbased seller, Wallup, LP. Robert Stepp also represented the buyer, Long Beach-based VMG Properties. The property sold for approximately $208,000 per unit and at a cap rate of 3.3 percent.
“This property is well-located in Signal Hill and offered the new ownership a 36 percent upside in rents as they are currently well below market rates,” said Stepp. The transaction was a trust sale with a high percentage of long-term renters. The new owners plan to reposition the property by modernizing the units and making significant improvements on the building exteriors.
Built in 1964, the two-story hilltop property overlooks Long Beach and sits on a 13,849-square-foot lot. It includes 13 one-bedroom units and 11 two-bedroom units as well as 24 subterranean parking spaces. 1867 Temple Avenue offers residents a pool, is elevator served, and is adjacent to Hillbrook Park.
Signal Hill is surrounded by Long Beach and is a well-balanced, financially sound and economically diverse community with a population of over 11,400 people. It is situated just a few miles from Downtown Long Beach which employs more than 40,000 people at its more than 1,500 companies.