Stepp Commercial, a leading multifamily brokerage firm in the Santa Monica market, has completed the $3.2 million sale of a fully occupied 13-unit property located at 1313 Pico Boulevard in Santa Monica. The commercially zoned, two-story property includes 11 residential apartment units as well as two commercial spaces occupied by a hair salon and an accounting firm.
Kimberly Roberts Stepp, principal, and Aynsley Armbrust, vice president, with Stepp Commercial, represented the seller, a private trust from Los Angeles, as well as the buyer, North Hollywood-based MGA Investments, Inc. The transaction closed at full asking price with a low cap rate of just 2.8 percent and gross rent multiplier (GRM) of 19.
“This property offers the buyer the value-add potential of 80 percent upside in rents,” said Stepp. “The new owner is negotiating buyouts with existing tenants and will renovate and reposition the property in the near future in order to maximize value.”
Stepp added: “This area of Santa Monica is continuing to improve with an influx of A-plus credit tenants, high-end restaurants and shops, new development and proximity to the Expo Line.”
Built in 1946, the property consists of 10 one-bedroom units, one two-bedroom unit, and two commercial units. The well-located asset is just 12 blocks from the numerous shops and restaurants on Ocean Avenue and Main Street.
- Submitted by Darcie Giacchetto