Stepp Facilitates Long Beach 1031 Exchange
The three-property portfolio traded for $10.6 million or nearly $189,000 per unit and closed at a 4.6 percent cap rate.
By Ariela Moraru
765 Cerritos Ave., Long Beach, Calif.
Mandek 10 Property Partners acquired a 56-unit apartment portfolio in Long Beach, Calif. as part of a 1031 exchange. The three-property portfolio traded for $10.6 million or nearly $189,000 per unit and closed at a 4.6 percent cap rate. Stepp Commercial Principal Robert Stepp represented the seller, a private investor, as well as the buyer. The seller traded in a 71-unit apartment property in Whittier as the upleg in the 1031 exchange.
The three properties are located near St. Mary Medical Center Long Beach and a five-minute drive from downtown retail amenities:
- 765 Cerritos Ave., a 20-unit property built in 1963;
- 731 Orange Ave., a 24-unit property built in 1958; and
- 933 Alamitos Ave., a 12-unit property built in 1945.
“This portfolio offered the buyer a solid mix of one and two units with rental upside and ample parking,” said Stepp in prepared remarks. “Additionally, this is the downleg for the seller in a 1031 exchange who wanted to sell its smaller assets and trade up into a larger, single, turn-key apartment community for easier property management functions. Overall, this increased the seller’s cash flow and provided the buyer with a value-add opportunity in a non-rent controlled market.”
Image via Google Street View
