Stepp Commercial, a leading multifamily brokerage firm in the Santa Monica market, has completed two sales of fully-occupied apartment properties in Santa Monica, one of the hottest locations for multifamily properties in Los Angeles county.
The sales total $3.45 million and closed at or below 3.6 percent cap rates. Kimberly Roberts Stepp, principal with Stepp Commercial, represented the private, Los Angeles-based seller and buyer on each transaction.
The first property is located at 1405 Ocean Park Blvd. It includes all one-bedroom, bungalow style units with private patios and closed at a 3.6 percent cap rate. It is located in the Green Street district and was a turn-key opportunity for the buyer as it had recently been extensively remodeled.
The second property is located at 2614 Kansas Ave. on an oversized lot of over 11,000 square feet. It includes six, two-bedroom units and one, one-bedroom unit and closed at a 3.3 percent cap rate. The asset provided the buyer with a long-term, value-add opportunity to upgrade the existing building and bring rents up to market rates when units become available.
“The Santa Monica market has some of the highest rents in the county and investors seek the long-term stability as the area continues to attract business and residents looking for a lifestyle that offers convenient access to the beach, dining, shops, nightlife, and entertainment venues,” said Stepp.