February 7, 2019 – Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $5 million sale of a 24-unit apartment property located at 1867 Temple Avenue in Signal Hill, a city completely surrounded by Long Beach.
Principal Robert Stepp and Senior Vice President Michael Toveg of Stepp Commercial represented the Long Beach-based seller, Wallup, LP. Robert Stepp also represented the buyer, Long Beach-based VMG Properties. The property sold for approximately $208,000 per unit and at a cap rate of 3.3 percent.
“This property is well-located in Signal Hill and offered the new ownership a 36 percent upside in rents as they are currently well below market rates,” said Stepp.
The transaction was a trust sale with a high percentage of long-term renters. The new owners plan to reposition the property by modernizing the units and making significant improvements on the building exteriors.
Built in 1964, the two-story hilltop property overlooks Long Beach and sits on a 13,849-square-foot lot. It includes 13 one-bedroom units and 11 two-bedroom units as well as 24 subterranean parking spaces. 1867 Temple Avenue offers residents a pool, is elevator served, and is adjacent to Hillbrook Park.
Signal Hill is surrounded by Long Beach and is a well-balanced, financially sound and economically diverse community with a population of over 11,400 people. It is situated just a few miles from Downtown Long Beach which employs more than 40,000 people at its more than 1,500 companies.