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News, Real Estate, Santa Monica

Santa Monica Apartment Complex On 20th Street Sold For $6 Million

Posted Feb. 27, 2014, 8:05 am

Brenton Garen / Editor-in-Chief

A 20-unit multifamily property located at 1027-1033 20th Street in Santa Monica has sold for $6 million.

Kimberly Roberts Stepp, senior managing director with Charles Dunn Company, represented the seller, Santa Monica-based Eisen, LLC, as well as the buyer, Los Angeles-based 1027 ENA, LLC. The transaction closed at a 3.7 percent cap rate.

Built in 1956, the property is located north of Wilshire and just two blocks south of Montana Ave.

It includes two, three-bedroom/two-bathroom units; 12, two-bedroom/one-bathroom units; and six, one-bedroom/one-bathroom units.

Stepp said this property offered the buyer excellent upside potential as the rents were 67 percent below market rates.

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Comments

Feb. 27, 2014, 10:00:11 am

TDA said...

That's terrible upside potential. 67% below market in a rent controlled area means that you have to wait for your tenants to die before you can get those units up to market rates. They paid $6M for this? I will bet you anything they're foreign investors. They're buying up Santa Monica properties like mad for inflated prices...I predict a boom in apartments being converted to condos.

Feb. 27, 2014, 2:39:39 pm

Karen said...

It's an investment if they are planning to evict the existing tenants and either converting the complex to condos or removing the tenants to increase rent. My friend lives in an apt complex that was recently purchased by ENA LLC and that's exactly what they are trying to do. Worst of all, they are trying to evict under false pretenses.

Feb. 27, 2014, 3:23:46 pm

Melody said...

$300k per unit ends up being a pittance after you convert to condos. Each 3 bdrm will sell for $1mil, each 2bdrm $800k, and each 1bdrm $600k. After relocation costs for each unit, a little rehab, down time, and closing costs this investment will net well over $10,000,000. NICE!

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