LONG BEACH, CA – Stepp Commercial, a leading multifamily brokerage firm in the Long Beach market, has completed the $50.8 million sale of Patio Gardens, a 127-unit apartment community located at 4874 East Los Coyotes Diagonal, in the Traffic Circle neighborhood of Long Beach. Built in 1958, the property is comprised of 19, two-story buildings and is situated on nearly six acres fronting Los Coyotes Diagonal.
Robert Stepp, Principal with Stepp Commercial, represented the seller, a Long Beach-based private investor, as well as the buyer, Emeryville-based based HFH Limited. The closing cap rate was 3.8 percent and a price per unit of approximately $406,300. HFH Limited assumed the existing JPMorgan Chase loan with a 55-percent down payment.
Stepp worked with the seller to acquire the asset for $35.3 million in June 2016. After just two years, the asset was sold for $15.5 million more, providing testimony to the continuing strength of the Long Beach rental housing market.
“Aside from Downtown, Patio Gardens is one of the largest multifamily properties in Long Beach and it is also within the Traffic Circle area, one of the market’s most desirable rental areas,” said Stepp. “There is an abundance of new commercial development happening near Patio Gardens, and the majority of the neighboring properties are currently being renovated. This Long Beach submarket is truly undergoing a transformation and as a result, the value of this asset rose substantially over the past two years.”
Stepp noted that the seller is planning to acquire a larger asset outside of California and Patio Garden’s buyer plans to add value to the asset by renovating the units with modern upgrades, making building systems enhancements, and embarking on exterior aesthetic improvements such as paint and landscaping.
Patio Gardens consists entirely of spacious two-bedroom units averaging 1,000 square feet and about 80 percent of the units include outdoor patios. The community offers beautifully landscaped gardens, lush lawns, laundry facilities, fitness center, and parking garages. The asset is less than two miles from California State University of Long Beach and is three miles from the popular Belmont Shore neighborhood.
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. For more information visit steppcommercial.com