Monday, June 13, 2011

12.2 - 13.3 GRM in Santa Monica, California Apartment Market 2nd Quarter 2011 - Market is Stable, Balanced Between Buyers and Sellers

Santa Monica small- to mid-size multifamily properties are selling at approximately 12.3 - 13.3 GRM in the past three months.   This GRM is comparable to the returns that we observed 1 year ago during the 2nd Quarter 2010.

The residential housing market finds itself under many stresses, but the local apartment market, dominated by well-capitalized individual investors, is balanced between buyers and sellers 

Sellers have largely not been forced to lower prices to compete with distressed properties, and when pricing their property within the narrow GRM band at which sales take place, will net a sale within a "reasonable" time frame.   

Buyers, who are fewer these days, will find that any serious offer is well-received by a reasonably motivated Seller.

Here are recent sales:

817 18th Street, Santa Monica - 20.1 GRM - Sold for $2,250,000 on 4/28/11.  This 7 unit building consists of primarily large 3 + 2 and 3 + 2.5 units that are TORCA converted condominiums (affordable housing of sorts).  1975 construction.  Great location right off Montana.

1311 23rd Street, Santa Monica - 13.3 GRM - Sold for $2,050,000 on 4/12/11. Building is comprised of eight 2 + 1 units, with rents averaging a moderate $1,530/month.  1949 construction, 7,416 sq ft.  Location is South of Wilshire near St Johns Hospital.

2309 Oak Street, Santa Monica - 12.3 GRM - Sold for $1,800,000 on 5/19/11.  This 12 unit building was has all 1 + 1 units, comprising six  bungalows and six other units.  Five of the 12 units are rented at below market, and the remainder are at market ($1,100 - $1,250/month).  1938 construction, 5,437 sq ft.  Location is 8 blocks north of the Santa Monica airport, just off Ocean Park Blvd.
1518 19th Street, Santa Monica - 12.9 GRM - Sold for $1,300,000 in May 2011.  This 7 unit building is 1937 construction with a scant footage of 2,311 sq ft.  Just south of Santa Monica Boulevard.

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