Stepp Commercial Completes $3.05 Million Sale of Value-Add Apartment Property

Built in 1944, 4321-4327 Elm Avenue consists of two, two-story buildings
Stepp Commercial Completes $3.05 Million Sale of Value-Add Apartment Property in Bixby Knolls Submarket of Long Beach
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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.

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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.

Lisa Hay

Lisa is a staff reporter for What Now Media Group. She covers new restaurant, retail, and real estate openings across all of our markets. A true foodie, this Air Force veteran has lived all over the world — from Aviano, Italy to Nairobi, Kenya — but her favorite spot is NOLA for its rich history, architecture, culture, and of course, its good eats.
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