Small-scale investors flocking to Long Beach seeking high returnsRelease Date: 2018-05-17
Long Beach, once known as a blue-collar port city catering to manufacturing jobs, is sleepy no more. The rising tide of the Los Angeles residential real estate market has lately led a flock of investors to the city, located on the southern end of the county.
Many small-scale, private investors are descending on the coastal submarket because of its appealing returns, CoStar reported. Multifamily investors did nearly $1 billion in sales in Long Beach over the last year, setting a new record for the South Bay city. The sales included almost 450 multi-family homes.
Since the first quarter of 2018, another 135 sales have closed in the Long Beach/Ports submarket, reflecting the increased interest in the neighborhood. Unit prices have doubled in Long Beach since 2014, and average cap rates dropped by around 200 basis points.
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