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SANTA MONICA, CA- La Montana Investors LLC of San Francisco has sold the 23-unit La Montana Apartments complex at 811 Sixth St. for $7.55 million at a 3.4% cap rate and a 16.2 gross rent multiplier, according to Vince Norris of Hendricks & Partners North Los Angeles office. Norris reports that the San Francisco-based seller decided to sell in order to “take advantage of other investment opportunities.”

Norris comments that the sale “affirms the demand for quality properties in superior locations” and translates into more than $328,000 per unit. The 1972 vintage property has had only three owners in its history, and was “a rare opportunity” seized upon by the local investor who bought the property, Norris says.

The property had been upgraded and well maintained unlike other similar vintage Santa Monica properties, according to Norris. The units at La Montana average more than 1,000 square feet with a mix of units ranging from one to three bedrooms. Unit interiors feature hardwood-style flooring, fireplaces and ceramic-tiled kitchens.

The property had “tremendous appeal to both tenants and investors” because of its location at Montana Avenue and Sixth Street, according to Norris, who notes that the complex traded at 95% of its $7.97 million asking price. The seller priced the property to attract buyers, he says, and it generated numerous offers from local private investors.

Like many vintage Santa Monica apartments, La Montana had numerous long-term tenants, which will eventually allow the buyer to significantly increase income over time, Norris points out. Low-maintenance design and operating costs will allow the buyer to have a cost-efficient building over the long run, he says.

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