Stepp Commercial, a multifamily brokerage firm in the Los Angeles market, has completed the $6.64 million sale of a value-add 22-unit apartment property located at 4114 to 4118 Elm Avenue in the Bixby Knolls submarket of Long Beach, CA.
Todd Hawke and Michael Toveg of Stepp Commercial represented the seller, a private investor from Long Beach who was in a 1031 exchange. Stepp Commercial’s Robert Stepp represented the buyer, a Long Beach-based private investor. The property closed at a cap rate of 3.7% and a gross rent multiplier of 15.7.
The property consists entirely of one-bedroom units. In addition to the pool and courtyard, the property features a sun deck, on-site laundry and 11 parking spaces.
“This was the first time this generational asset had been on the market in 50 years,” said Hawke in a statement. “Featuring a pool and large courtyard as well as upside in rents, the property garnered a significant amount of investor interest.”
“The new ownership liked the significant value-add potential for unit upgrades and enhancing the exterior landscaping and swimming pool area,” said Stepp. “Our buyer client is an experienced investor who understands the Long Beach rental market and plans to take this asset to a new level that will appeal to young professionals seeking well-located, high-quality Long Beach rental product.”
Bixby Knolls is a popular rental neighborhood due to its proximity to Atlantic Avenue’s restaurants, coffee shops and amenities, as well as high-paying aerospace and technology employment.