January 22, 2020 – Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $4.75 million sale of a 20-unit apartment property located at 3500 Cedar Avenue in Long Beach, CA.
Stepp Commercial Principal Robert Stepp and Senior Vice President Michael Toveg represented the seller, a Long Beach-based private investor who owned the asset for several decades and is trading into a triple-net retail property. Stepp Commercial’s Alex Figueroa represented the Los Angeles-based 1031 exchange buyer, a syndicator that owns upwards of 60 units in Long Beach. The price per unit was $237,500 and the closing cap rate was 2.8 percent.
Built in 1974, 3500 Cedar Avenue is a hacienda-style property situated on a large, 15,270-square-foot lot. The two-story asset includes nine one-bedroom units and 11 two-bedroom units. The property features a large center courtyard with swimming pool, on-site laundry facilities and 30 parking spaces. It is within a cul-de-sac adjacent to Wrigley Heights, a desirable suburban enclave with tree-lined streets and mostly single family homes.
“This asset offered all the fundamentals for a huge, value-add repositioning play,” said Stepp. “The new ownership will be completely renovating the property inside and out eventually realizing a 70 percent rental upside based on current market rents.”
“The majority of Wrigley Heights apartment inventory is made up of older, unrenovated buildings that do not trade very often. After the renovations, our buyer will have a uniquely competitive product to take to the rental market,” added Toveg.
Wrigley Heights offers commuters quick access to all parts of Long Beach and greater Los Angeles via major freeways as well as the Metro Blue Line, which runs between Downtown Long Beach and Downtown Los Angeles, with 22 stops along the way.