Category: Stepp Commercial

Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $10.7 million sale of Gramercy Hollywood, a 28-unit apartment property located at 1836 N. Gramercy Place in one of the most coveted neighborhoods of Hollywood.

Executive Vice President Darin Beebower with Stepp Commercial represented the seller, a Los Angeles-based private investor, and also procured the buyer, an investment firm from Los Angeles. The closing cap rate was 4.3 percent, the price per unit was $383,143, and the price per square foot was $545.

The property recently underwent a complete transformation into a best-in-class asset featuring a modern style of living with luxury amenities. Originally built in 1964, the two-story property includes five two-bedroom units, 17 one-bedroom units and 6 studios. Twenty-one units were fully renovated and include stainless steel appliances (including microwaves and dishwashers), custom designer cabinetry, quartz countertops, tiled backsplashes, wood style flooring, recessed lighting, central HVAC, custom-tiled baths and in-unit washers and dryers.

“Led by media, tech and entertainment firms such as Netflix, Hollywood has become the fastest growing employment market in Southern California. As testimony to this economic momentum and its impact on housing demand, Gramercy Hollywood sold for the highest price per square foot of any renovated property over 15 units ever in Hollywood,” said Beebower.

Gramercy Hollywood is surrounded by Hollywood’s most famous landmarks, including the Hollywood Bowl, ArcLight Cinemas, Pantages Theatre, Fonda Theater, El Capitan Theatre, Dolby Theatre, Roosevelt Hotel, and the Hollywood Walk of Fame. Hollywood’s central location, expanded transit and access options, world class entertainment and nightlife, and the expansion of companies migrating to the area all serve to drive additional demand for new developments and renovation projects. Hollywood has been attracting many young professionals seeking a walkable, urban environment near entertainment employment centers, nightlife/recreation, restaurants and public transportation.

Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $6.75 million sale of Rolling Hills Gardens Apartments, a 24-unit apartment building located at 25925 Viana Avenue, adjacent to Pacific Coast Highway, in Lomita, California.

Executive Vice President Darin Beebower and Associate Rockwell Allen of Stepp Commercial represented the seller, a local private investor, in the transaction. The private buyer was also local to the area.  The transaction closed at a 3.3 percent cap rate.

Built in 1963, the two-story building comprises of one studio unit, 13 one-bedroom units, and 10 two-bedroom units with covered parking for each, along with private patios or balconies surrounding a central courtyard and swimming pool. The rare opportunity represented the first time this well-maintained multifamily property had come on the market in over 30 years.

Rolling Hills Gardens benefits from a great location on a quiet cul-de-sac, abutting Rolling Hills Golf Course and Country Club and Rolling Hills Estates, amid the affluent suburban communities that comprise the Palos Verdes Peninsula, one of the most desirable locations is Los Angeles County. It has easy access to the nearby Pacific Coast Highway, the 110 Freeway, and L.A.’s historic Western Avenue.

“This property offers an excellent value-add opportunity, with the potential to implement high-end renovations and substantially increase rental income,” said Beebower. “The transaction set a record for the highest reported price per foot and price per unit, as well as the lowest reported cap rate of any 15-plus unit apartment building ever sold in Lomita.”

The Palos Verdes Peninsula is home to the most scenic terrain in L.A. County, with more than 1,600 acres of protected beaches, bluffs, steep slopes, canyons and ridgelines. Highlights include spectacular ocean views from the bluffs 1,300 feet above the Pacific Ocean, black sand beaches with coves and tide pools, and over 30 miles of hiking and equestrian trails. Residents enjoy the beautiful Southern California lifestyle in one of the iconic beach towns strung along the Pacific Coast Highway/Highway 1, just south of the fabled surf cities Manhattan Beach, Hermosa Beach and Redondo Beach.

Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $14.95 million off-market sale of 425 Coronado Avenue and 424 Obispo Avenue in the Belmont Heights submarket in Long Beach, CA.

Stepp Commercial Principal Robert Stepp and Senior Vice President Michael Toveg represented the buyer, Santa Monica-based Miramar Capital. The seller was a Los Angeles-based private investor. The price per unit was $311,459.

“This was a rare opportunity for our client to own two large-scale adjacent apartment assets in a prime Belmont Heights location,” said Stepp. “These properties were owned by the seller for 30 years and present a value-add play for the new ownership to renovate and update the unit interiors and exterior to secure a stronger rental income and favorable cash-flow.”

The properties offer a mix of spacious two-bedroom, one-bedroom and studio units and feature a swimming pool in-between the two buildings for residents’ use. Additionally, the assets include 48 parking spaces.

Stepp Commercial, a leading multifamily brokerage firm in the Los Angeles market, has completed the $1.7 million sale of Oak Street Bungalows, a five-unit apartment property located at 2444 Oak Street in Santa Monica, CA. The property is near the beach and the world-famous Santa Monica Pier.

Principal Kimberly Stepp of Stepp Commercial represented the seller, a Los Angeles-based private investor, and the buyer, Gortkov Enterprises. The price per square foot was $588.

Built in 1937, the property is situated on a large corner lot and includes three bungalow-style units, a one-bedroom loft unit, and a studio apartment all of which feature hardwood floors, private dual entrances, patios, and private outdoor space.

“The new ownership is planning on renovating and creating additional value as the rents have a potential 48 percent upside,” said Stepp.

Santa Monica continues to be one of the hottest residential markets within the greater Los Angeles region as it provides residents a coastal lifestyle with a myriad of nearby retail, dining, and entertainment amenities. It also offers public transit options as well as nearby employment within the thriving Silicon Beach tech, media and entertainment hubs.  With a median home price of $1.8 million in Santa Monica, rental demand remains strong.