Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $8.5 million sale of an 85 percent occupied 14-unit apartment property located at 833 20th Street in Santa Monica, CA. The property is near the cross street of prestigious Montana Avenue, a favorite retail and dining destination.
Principal Kimberly R. Stepp of Stepp Commercial represented the parties, both Los Angeles-based private investors. The closing cap rate was a low 3.4 percent and the price per unit was just over $607,000; one of the highest per unit prices in the past 18 months in Santa Monica.
Built in 1969, the two-story property features a large center courtyard and 14 covered parking spaces. The asset includes six three-bedroom units, six two-bedroom units and two one-bedroom units—all of which offer spacious floorplans, walk-in closets, and private balconies/patios.
“This value-add asset not only offered the buyer a prime Santa Monica location, it also presented an approximately 42 percent rental upside and an attractive cost per square foot,” said Stepp. “Additionally, two units were delivered vacant and were fully renovated offering the new ownership an immediate opportunity to secure market rents.”
The property is just steps south of all the amenities on Montana Avenue and is also near the Santa Monica beaches, as well as shopping, dining and nightlife of Third Street Promenade and Main Street.
About Stepp Commercial
Stepp Commercial is a brokerage firm specializing in the multifamily property sector. Stepp Commercial’s mission is to provide apartment owners with a fully integrated sales platform that includes comprehensive market knowledge and local real estate expertise to successfully complete any type of multifamily transaction.