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Stepp Commercial, a multifamily brokerage firm in the Los Angeles market, has completed the $3.05 million sale of an eight-unit apartment property located at 4321 to 4327 Elm Avenue in the Bixby Knolls submarket of Long Beach, CA.
Principal Robert Stepp and Senior Vice President Mark Witsken of Stepp Commercial represented the seller, a private investor from Indiana. The buyer was a private investor from Santa Monica. The property closed at a low cap rate of 3% and a gross rent multiplier of 18.5.
“At a sale price of just over $370,000 per unit and $450 per square foot, this marks one of the strongest transactions in Bixby Knolls over the past 12 months,” said Stepp in a statement. “Long Beach has been experiencing renter demand from young professionals seeking a beautiful coastal location as the job market and amenity base continues to grow and thrive.”
“The seller had owned the property for decades and was able to realize a strong return on investment,” added Witsken. “This asset offered the buyer the opportunity to add value through a major renovation and repositioning strategy and bringing rents to market rates.”
Built in 1944, 4321-4327 Elm Avenue consists of two, two-story buildings that sit on a large lot. It features eight spacious two-bedroom units and includes onsite laundry facilities, eight private single car garages, and a large lawn area with mature trees.
The property is just steps from Trader Joes and is proximate to a growing number of restaurants, coffee shops and amenities on Atlantic Avenue.