Long Beach, Calif.—Stepp Commercial has brokered the $4.4 million sale of a two-property, 22-unit apartment portfolio in the Belmont Heights submarket of Long Beach, Calif. Robert Stepp and Michael Toveg of Stepp Commercial represented the seller, Long Beach-based Colonna Trust, as well as the two separate buyers.
One of the properties was 305 Coronado Ave., which includes 16 units and was sold for $2.9 million ($181,250 per unit), at a cap rate of 3.7 percent. Built in 1948, the property includes eight one-bedroom units and eight studio units. Common amenities include onsite laundry and controlled access entry. The buyer was Stockton-based Grupe Properties.
The other property was 539 Coronado Ave., which includes six units and was sold for $1.5 million ($250,000 per unit), at a cap rate of 4.08 percent. Built in 1969, the property includes all two-bedroom units and features eight private garages, onsite laundry, and controlled access entry. The buyer was Long Beach-based Seaward Road Enterprises LLC.
“Colonna was in the middle of a 1031 exchange into a tenant-in-common property and so we decided that selling both assets off-market was the best strategy,” noted Stepp.
According to Toveg, there’s a lack of high-quality rental units in the neighborhood. “The buyers saw the opportunity to purchase assets in an area dominated by older properties with deferred maintenance, and plan to renovate the units to bring the rents up to market value,” he explained.