Venice Beach Apartments, a fully occupied, five-unit apartment property that is just a short walk to Venice Beach, sold for $2 mil – or $400k/unit. The transaction came in at a record-breaking with a cap rate of .7 percent – the lowest cap rate ever to record for an apartment property nationwide, per CoStar records, we’re told.
Built in 1922 and located at 22 Paloma Ave, Venice Beach Apartments is situated on a very desirable, walkable street. The two-story property includes one-, two- and three-bedroom units with private patios.
Kimberly R. Stepp with Stepp Commercial represented the seller, Los Angeles-based Surf City Realty, as well as the buyer, Los Angeles-based Place Holder DP, LLC.
According to Stepp, the property had significant deferred maintenance and several tenants agreed to relocate during escrow with buyouts that justified the record-breaking cap rate. The property is viewed as a tremendous value-add opportunity.
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