Tuesday, December 15, 2015

Stepp Commercial Completes Two Apartment Property Sales to 1031 Exchange Buyer for $4.33 Million in Long Beach, CA

Robert Stepp
 LONG BEACH, CA– Stepp Commercial, the leading multifamily brokerage firm in the Long Beach market, has completed two apartment property sales to a single 1031 exchange buyer, Northpoint Realty.

The assets, which are situated across the street from each other in the Eastside/Circle area of Long Beach by Temple Avenue, sold for a total of $4.33 million and nearly $155,000 per unit.

“Stepp Commercial worked in conjunction with two different sellers of similar, courtyard-style apartment properties on the same street,” said Robert Stepp, principal with Stepp Commercial. “We advised the sellers to list both assets at the same time with the strategy of attracting a 1031 exchange buyer, which is exactly what happened.”

Michael Toveg, senior vice-president with Stepp Commercial added: “Ultimately, we successfully closed escrow on the two properties and garnered a sale price of $246 per square foot. That is one of the highest prices ever paid for comparable apartment assets in the surrounding area.”

Michael Toveg
The first property was sold for $2,525,000 and is located at 2705 to 2723 E. Spaulding Street. Stepp and Toveg represented the seller, Keeley Partners, LP, as well as the buyer. 

The transaction closed at a 5.4 percent cap rate. Built in 1958, the two-story, 16-unit property includes four, one-bedroom units and 12, two-bedroom units. All the units were recently remodeled to include updated kitchens with granite countertops.

The second property was sold for $1,805,000 and is located at 2727 to 2730 E. Spaulding Street. Stepp and Toveg represented the seller, BJJ Investments, LLC, as well as the buyer. 

The closing cap rate was 5.1 percent. Built in 1958, the two-building, two-story property includes 12 units consisting entirely of two-bedroom units.

For a complete copy of the company’s news release, please contact:

Darcie Giacchetto


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