Santa Monica Multifamily Sales 2025: What’s Selling, What’s Sitting
If you’re an owner or investor in Santa Monica multifamily real estate, whether you’re holding a duplex, triplex, fourplex, or a 10-unit apartment building, or a larger income property, the question is always the same: what are properties really selling for right now?
The truth is, closed sales (solds) set the real market value, while actives and pendings show where buyer and seller expectations are headed. Below is a breakdown of recent Santa Monica multifamily sales, listings, and pending deals to help both buyers and sellers navigate today’s market.
Recent Multifamily Sales in Santa Monica
Smaller buildings ($2.0M–$2.7M, 4–6 units):
1027 12th St — 5 units, sold for $2.05M ($832/sf)
1332 10th St — 5 units, sold for $2.56M ($600/sf)
Mid-size properties ($3.5M–$3.9M, 10–15 units):
1518 10th St — 11 units, sold for $3.64M ($372/sf)
824 Lincoln Blvd — 10 units, sold for $3.05M ($556/sf)
Larger assets ($4.2M–$4.5M+, 13–18 units):
1013 12th St — 10 units, sold for $3.7M ($528/sf)
1437 9th St — 16 units, sold for $4.5M ($1,317/sf)
Investor takeaway: Buyers are paying premiums for North of Montana, Wilmont, and Ocean Park multifamily buildings.
Sold MultifamilyMarket Stats (May–Aug 2025) Santa Monica:
Count: 14
Average Price: $3.42M
Average Price per SF: $586/sf
Average Days on Market (DOM): 58 days
Active Listings: Santa Monica Multi-Unit Properties
The active market for multifamily, most above where recent sales have closed:
Typical Actives ($3.2M–$4.0M):
1050 12th St — 10 units, asking $3.8M ($538/sf)
1307 15th St — 11 units, asking $4.0M ($476/sf)
Trophy Properties (slow to move):
901 Ocean Ave — 28 units, asking $32.6M ($1,054/sf)
537 San Vicente Blvd — 33 units, asking $17.5M ($433/sf)
Active Market Stats:
Count: 27
Average Price: $5.20M
Average PSF: $671/sf
Average DOM: 104 days
Many actives are priced 10–15% above recent closings, which explains longer time on market.
Santa Monica Multifamily Pending & Under Contract
Pending transactions show where demand is strongest and give a forward-looking view of the market:
2002 Montana Ave — 6 units, pending at $2.8M ($617/sf)
2601 2nd St — 3 units, pending at $2.99M ($836/sf)
917 5th St — 10 units, pending at $4.40M ($535/sf)
2428 Kansas Ave — 7 units, pending at $2.68M ($472/sf)
231 California Ave — 5 units, pending at $2.30M ($519/sf)
Pending Market Stats:
Count: 5
Average Price: $3.14M
Average Price per SF: $603/sf
Average Days on Market (DOM): 172 days
The bulk of pendings are clustered between $2.7M–$3.2M, showing continued momentum in the “sweet spot” of the Santa Monica multifamily market.
Where the Demand Is in 2025
Sweet Spot: $2.3M–$3.6M for 5–12 unit properties — fastest turnover, broadest buyer pool, and most lender-friendly.
Opportunistic Buyers: Targeting under $3M properties in premium neighborhoods (Montana Ave, Wilmont, Ocean Park).
Slower Segment: Larger $5M+ assets — moving slowly unless value-add (vacancy, ADU potential, or redevelopment) is clear.
Bottom Line for Santa Monica Apartment Owners & Buyers
Sellers: Price realistically against solds, not just competing actives. Properties in the $2.5M–$3.6M range with clean financials and stable income are closing in under 60 days.
Buyers: If you’re chasing stability, focus on North of Montana and Wilmont, where tenant retention is strong. For value-add upside, look south toward Ocean Park and mid-city Santa Monica, where pricing per SF is lower.
Santa Monica Rents & Vacancy Trend — Mid-2025 Snapshot
Vacancy rate stands at just 4.4%, down nearly two full points compared to last year — a sign of tight rental supply and robust occupancy.
After several months of upward movement, rents declined 0.7% in June, marking the third straight monthly dip. Nevertheless, year-over-year rent growth still sits at a healthy +4.1%, outpacing both state and national averages. actiontakesaction.com
Santa Monica Multifamily Frequently Asked Questions
How much can rents go up in 2025?
Starting September 1, 2025, rent-controlled apartments in Santa Monica can go up by 2.3%. But the most your rent can rise is $60 a month if you already pay more than $2,587.
Santa Monica Rent Control Board
What happens if a tenant has to move because of an owner move-in, Ellis Act, or demolition?
If a tenant is forced to move, the landlord must pay a relocation fee. Starting July 1, 2025, the fees are:
Studio: $19,950
1-Bedroom: $27,500
2-Bedrooms or larger: $38,250
If the household includes a senior (62+), someone with disabilities, or a child, the payment is even higher. This money comes from the landlord, not the tenant.
Do tenants pay for earthquake (seismic) retrofits?
No. Santa Monica requires older “soft-story” apartment buildings to be retrofitted for earthquake safety, but landlords cannot pass retrofit costs onto tenants in rent-controlled units.
Also note: in April 2025, FEMA cut back some funding for retrofit grants, so owners should check with the City about what financial help (if any) is available now.
Santa Monica Seismic Retrofit Program • San Francisco Chronicle
What is the real estate transfer tax when selling in Santa Monica?
When you sell property in Santa Monica, you pay both the County and City transfer tax:
Under $5M: $4.10 per $1,000 (County $1.10 + City $3.00)
$5M and up: $7.10 per $1,000 (County $1.10 + City $6.00)
This comes out of the seller’s closing costs, so it’s important to budget for it.
Santa Monica Finance, Transfer Tax • California City Finance
Seller Checklist for Santa Monica Multifamily Owners
If you’re selling an apartment building in Santa Monica, buyers and lenders expect complete, transparent information. Prepare these before going to market:
1. Rent Information
Rent Roll – List of units and what each tenant pays.
Maximum Allowable Rent (MAR) Letters – Proof of legal rent from the Rent Control Board.
Rent Control Docs – Notices, banked increases, or other RCB communications.
2. Financial Records
T-12 – Last 12 months of income and expenses.
Utility & Service Bills – Gas, water, trash, pest control, etc.
Capital Improvements – Roof, plumbing, electrical, or unit upgrades.
3. Property Condition
Inspection Reports – Sewer, pest, plumbing, and general condition.
Retrofit & Permits – Seismic (soft-story) compliance, open or completed permits.
Maintenance Records – Proof of ongoing upkeep.
4. Legal & Compliance
Relocation Exposure – Relocation fees only apply if the owner (or future buyer) wants tenants to move out so the building can be repositioned — for example, to raise rents to market, remodel units, or clear occupancy for redevelopment. If tenants leave on their own, no relocation fee is owed..
Disclosures – Be upfront about any property issues (foundation, roof, plumbing, arrears).
5. Presentation Package
Professional Photos & Floor Plans – Use high-quality visuals that showcase the property’s best features. Include interior and exterior shots, plus a bird’s-eye (drone) view to highlight what’s nearby — parks, beaches, schools, or employment hubs. The goal is to capture attention immediately and show buyers both the property and its surroundings.
Marketing Narrative – Highlight what makes the property attractive beyond the numbers: proximity to top neighborhoods like Montana, Wilmont, or Ocean Park; strong tenant stability; and growth potential. Also point out lifestyle and demand drivers — walkability to parks and beaches, nearby job hubs (Hulu, Universal Music, Oracle, Snapchat), and access to top-rated schools like Franklin Elementary, Lincoln Middle, and Santa Monica High School.
Cash Flow – Don’t just list the cap rate (which is a broad market measure). Show buyers what they actually earn on their money after expenses and financing. This is called cash-on-cash return. Example: if a buyer invests $1M cash and the property pays them $60K per year after expenses and debt, that’s a 6% cash-on-cash return. It gives a clearer picture of real returns than cap rate alone.
Buyer Checklist for Santa Monica Multifamily Investors
If you’re buying an apartment building in Santa Monica, dig deeper than the listing. Here’s what to review before making an offer:
1. Rent Control & MAR
Check MAR – Verify legal rents with the Rent Control Board.
Review Rent Control History – Look at annual increases, banked rent, and services included.
Santa Monica Rent Control Board
2. Relocation & Tenant Turnover
Understand Relocation Fees – Required if tenants are displaced for owner move-in, Ellis, or demolition. Fees can range $19K–$38K+ per unit.
Budget for Exposure – Factor into underwriting if repositioning the property.
Santa Monica Relocation Fees
3. Property Condition
Retrofit Compliance – Confirm seismic upgrades are complete or budget for costs.
Inspections – Review general, sewer, pest, plumbing, and electrical.
Santa Monica Seismic Safety Program4. Financial Analysis
Use Legal Rents (MAR) – Base your numbers on what the Rent Control Board allows, not what the seller is asking.
Test Your Financing – Run the math with higher interest rates and assume some vacancy to see if the deal still works.
Check Real Returns – Don’t just look at cap rate, measure actual cash flow after expenses and the loan.
5. Closing Costs & Taxes
Transfer Tax – Under $5M → $4.10 per $1,000 | $5M–$7.999M → $7.10 per $1,000 | $8M+ (Measure GS) → $57.10 per $1,000.
Other Costs – Include title, escrow, and lender fees in your budget.
Santa Monica Transfer Tax Explained (Including Measure GS at $8M+)
| Sale Price | City Tax | County Tax | Total Transfer Tax |
|---|---|---|---|
| $3M (under $5M) | $3.00 per $1,000 = $9,000 | $1.10 per $1,000 = $3,300 | $12,300 |
| $6M (between $5M–$7.999M) | $6.00 per $1,000 = $36,000 | $1.10 per $1,000 = $6,600 | $42,600 |
| $8M (Measure GS triggers) | $56.00 per $1,000 = $448,000 | $1.10 per $1,000 = $8,800 | $456,800 |
| $10M (Measure GS applies) | $56.00 per $1,000 = $560,000 | $1.10 per $1,000 = $11,000 | $571,000 |
Conclusion:
In today’s market, successful multifamily sales require more than a property listing—they require strategy, presentation, and expertise. By understanding both the financial metrics and the physical details that matter to buyers, you can maximize your property’s value.
Selling a multifamily property goes far beyond square footage. Buyers weigh income, GRM, and cap rate, but they also value condition and upgrades, dishwashers, in-unit laundry, modern finishes, separate meters, and attractive landscaping. A well-maintained building with the right amenities will not only justify the numbers but also command top dollar.
Contact Us
If you’re thinking about selling or purchasing a multi-unit property, you need a professional who understands the market pulse, the complexities of multifamily transactions, and the ever-changing laws and disclosures. I’ll guide you through the process step by step, ensuring every detail is covered and every box is checked so you achieve the best possible results.