Redondo Beach Income Properties

The beach cities remain the hottest market for income units in the South Bay. While the water frontage areas have had amazing jumps in value, we're still seeing some appreciation plays in North Redondo.

 A fourplex on Curtis was listed this week for $1,625,000. This one not only has the appreciation potential we're continuing to see in Redondo, but the mix of 2 bedroom and 3 bedroom units are rented out under market so there is also upside in upgrading those to current rental rates. Would you like more information on this building or other income properties in the South Bay? Give Josh a call.

• Josh Toering, Agent at Charlemagne Intl Properties
• 310-525-9440

South Bay Income Property - May 2016

There are 134 income properties on the market in the South Bay. This month's price range is from $300,000 for a short sale duplex in Wilmington to $7.7M for a 7 unit building in Hermosa Beach.

Even with a busy sales market, we did pick up about 30 more apartments for sale this month.

96 units are in escrow, which indicates a very active market and about 1.4 months of available supply. In March there were 34 apartment buildings sold. The highest sales price was $5.3M for a 6-plex in northern Manhattan Beach.

Two to four unit building still dominate the available market in the South Bay at over 79% of the local apartments for sale. Quite a few larger buildings came on this month though, as that is a 6% change in ratio from April.

Available income units by city:

• Palos Verdes - 0
• Manhattan Beach - 8
• Hermosa Beach - 12
• Redondo Beach - 3
• Torrance - 7
• Lawndale - 11
• Lomita - 3
• Harbor City - 4
• San Pedro - 42
• Wilmington - 16
• Gardena - 12
• Carson - 6
• El Segundo - 1

South Bay available income units by type/size:

• Duplex - 55
• Triplex - 29
• Fourplex - 22
• 5-8 Unit Building - 19
• 9-19 Unit Buildings - 4
• 20+ Units - 3
• Details not provided or non-code compliant "rental" units - 2

If you'd like more information on any of these apartments for sale, just let us know.

Josh Toering, REALTOR at Charlemagne Intl Properties

310-525-9440 or email us

South Bay Income Property - April 2016

There are 104 income properties on the market in the South Bay. This month's price range is from $339,000 for a triplex in San Pedro (rented out under-market) to $7.65M for a 20 unit building in northern Redondo Beach.

Quite a few income units accepted offers in the last month which has dipped the inventory a little. The Beach Cities in particular had many apartments go into escrow, so the available inventory in those cities dropped by half or more.

86 units are in escrow, which indicates a very active market and about 1.2 months of available supply. In March there were 27 apartment buildings sold. The highest sales price was $5.15M for a fourplex about a block off the Strand in Manhattan Beach.

Two to four unit building still dominate the available market in the South Bay at over 85% of the local apartments for sale.

Available income units by city:

• Palos Verdes - 0
• Manhattan Beach - 3
• Hermosa Beach - 2
• Redondo Beach - 2
• Torrance - 6
• Lawndale - 8
• Lomita - 6
• Harbor City - 4
• San Pedro - 39
• Wilmington - 14
• Gardena - 12

South Bay available income units by type/size:

• Duplex - 46
• Triplex - 26
• Fourplex - 16
• 5-8 Unit Building - 12
• 9-19 Unit Buildings - 1
• 20+ Units - 1
• Details not provided or non-code compliant "rental" units - 1

If you'd like more information on any of these apartments for sale, just let us know.

Josh Toering, REALTOR at Charlemagne Intl Properties
310-525-9440 or email us

Just Listed - Duplex in Wilmington CA

Wilmington, CA is a “hot spot” in the South Bay of Los Angeles for income producing properties. Charlemagne Int’l Properties recently listed a side by side duplex on Ravenna Avenue, and this upgraded property will make a savvy addition to most rental income portfolios.

1111 & 1113 Ravenna Ave, Wilmington CA

• $365,000 listing price
• Two one bedroom, one bath units. One unit has remodeled kitchen. Some appliance upgrades.
• Garage with two spaces.
• 1152 sq.ft. building
• 3630 sq.ft. lot
• West Wilmington location is one of the highest demand rental areas of the city.

Each unit is one bedroom with interior laundry area and one space in the two-car garage. One unit’s kitchen was recently remodeled with new cabinetry, granite counters and stainless appliances. The other unit is upgraded with stainless appliances as well.

Income – One unit will be delivered vacant at close of escrow, so you can choose your tenant and rent rate.

• Proforma annual gross rental income – $24000
• 1 Bed/1 Bath rent – $950/month current rent
• 1 Bed/1 Bath rent – $1050/month (proforma based on actual offers from prospective tenants)

Call us soon, this one won’t last!

Josh Toering, Realtor at Charlemagne Intl Properties
ToeringandTeam@gmail.com or use our contact form
310-525-9440

Side by side one-bedroom units with laundry hook-ups inside.

Each unit gets a garage space.

Nice detail features inside.

Side access to the garage.

Updated bathroom

San Pedro Income Property - The Last Deal on the Coast?

Cabrillo Beach, at the harbor in San Pedro CA.

From Malibu to Redondo Beach, income property values have had a very healthy jump up in the last five years. While the Beach Cities and coastal location are still our most requested income property search, investors are finding the rental rates don't generate the returns they expect. On smaller buildings, such as a duplex or triplex, the interest level from builders looking for a quick demo/rebuild on the larger lots causes a bidding war these days.

The last "coastal" area in Los Angeles that hasn't skyrocketed is San Pedro. The harbor area of San Pedro has had the highest number of available income units for the last few years. It is often 3 to 4 times more units on the market compared to all the Beach Cities combined.

Advantages to San Pedro income units:

• High number of units on the market allows for actual negotiations during the purchase. In Santa Monica or the Beach Cities, it is often a "pay full price or move on" response from the seller.
• Los Angeles has committed another million dollars towards improvements to the public harbor waterfront. Plus the Port itself has close to a billion dollars in improvements planned over 5 years. While much of the Port's work will be safety and structural improvements, they area also working on beautification and public spaces.
• Newer construction buildings (1980+) are exempt from the rent control system.

Challenges with San Pedro income units:

• The LA City rent control laws apply to most buildings built before 1979. There have been some newer units built, however we often see 90 to 95% of the available buildings are older and rent control will apply. This makes buying vacant units very popular though, as you can start the rents out at market rates.
• San Pedro is part of the LA school system. While they have some higher rated elementary schools, the high school is still on the lower side for ratings.
• There are some neighborhoods/areas we'd recommend against.

If you would like more information on San Pedro income units, please give me a call.

 - Josh Toering, REALTOR at Charlemagne Intl Properties
310-525-9440 or email us

South Bay Income Units - Update March 2016

There are 109 income units listed for sale in the South Bay. 45 units are in escrow, which indicates a very active market and about 2 months of available supply. In February there were 27 apartment buildings sold. In March we've had 13 units transfer ownership so far.

Two to four unit building still dominate the available market in the South Bay at over 86% of the local apartments for sale.

Available income units by city:

• Palos Verdes - 0
• Manhattan Beach - 6
• Hermosa Beach - 9
• Redondo Beach - 6
• Torrance - 5
• Lawndale - 10
• Lomita - 13
• Harbor City - 2
• San Pedro - 43
• Wilmington - 20
• Gardena - 18

South Bay available income units by type/size:

• Duplex - 49
• Triplex - 27
• Fourplex - 18
• 5-8 Unit Building - 9
• 9-19 Unit Buildings - 3
• 20+ Units - 1
• Details not provided or non-code compliant "rental" units - 2

If you'd like more information on any of these apartments for sale, just let us know.

Josh Toering, REALTOR at Charlemagne Intl Properties
310-525-9440 or email us

Los Angeles Apartments - City Updates

A new client inquired about the income unit market for the nearby cities in Los Angeles.  Here are the updated city reviews and our thoughts on each area.

Beach Cities: Manhattan & Hermosa are very pricey in general and would strictly be redevelopment or pure appreciation plays.  We've helped investor's purchase in South & North Redondo and still recommend those areas, but there aren't any residential units for sale under $1MM currently.  El Segundo is also climbing in prices, but hasn't fully advanced to "beach cities" status for many prospective tenants.   12.8% value increase 2015. Projected increase 2016: 4.1%

Torrance & Lomita:  South Torrance is very strong with good schools and high demand for rentals.  North Torrance & Lomita are popular with "blue collar" tenants but those areas are not ready for redevelopment on a large scale.   3.1% value increase 2015. Projected increase 2016: 1.5%

Lawndale:   Very popular with wealthy Manhattan Beach residents who want to invest nearby.  Had strong appreciation in the last 3 years.  7.3% value increase 2015. Projected increase 2016: 2.9%

Palos Verdes: Typically "trophy" properties and only a few areas where they've been zoning approved.  Strong schools and solid appreciation.  Cap rates usually on the lower side.  Mainly 4 unit or larger apartments.  5.4% value increase 2015. Projected increase 2016: 2.1%

San Pedro: (LA City Rent Control)  One of the last water frontage areas in Los Angeles to not have a huge price jump.  The city has a large selection of apartments and often some room to negotiate on purchase price.  Low ranking of the high school and larger percentage of rehab facilities have held values back.  We recommend purchasing "above Gaffey" for low vacancy, however better cap rates are available closer to the harbor.  3.6% value increase 2015. Projected increase 2016: 2.2%

Wilmington & Harbor City: (LA City Rent Control) - Stronger cap rates.  Some pockets of higher crime and weaker schools have held these neighborhoods back.  Our clients with units in west Wilmington say they have very little vacancy due to high demand.  2.2% value increase 2015. Projected increase 2016: 2.3%

Would you like to know what units are selling for in these cities?  Just give us a call.

- Josh Toering, REALTOR with Charlemagne Intl Properties

310-525-9440

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