Wednesday, January 1, 2014

Hermosa Beach Income Property - Jan 2014


Hermosa Beach had a very hot year for income property.  The surging housing market of the Beach Cities combined with the limited availability of buildings for sale made for a competitive pricing environment.   Multiple offers were the standard and "all cash" deal the trump card.

Hermosa unit sales statistics for 2013:
  • Available buildings: 5 Properties are for sale from $859,000 to $2,200,000.
  • Pending sales: 3 Buildings are in escrow priced from $799,000 to $2,699,000.
  • Hermosa sales: 20 Buildings sold in 2013 from $660,000 to $3,022,500.  The average price was $1,396,000.  The average year built was 1951.  Only one of the 20 transfers in 2013 was a distressed sale.
Hermosa Beach income property building types (2013 Sales):
  • Duplex – 95%
  • Triplex – 5%
  • Fourplex – None
  • 5-8 Units – None
  • 8+ Units – None
Total unit value sold in Hermosa Beach in 2013: $26,900,000
Average gross rent multiplier for Hermosa Beach 2013: 24.1
Hermosa Beach unit cap rate for 2013 at 75% net income: 3.1%

For more information on available Hermosa Beach units for sale, please give me a call or drop us an email.

- Josh Toering (310) 525-9440

Hermosa Beach income property for sale:

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