Selling an apartment building in Santa Monica
Santa Monica is one of the tightest apartment markets in Los Angeles County. Beach access, walkable neighborhoods and very little new supply keep demand high, while strict local rent control shapes how buyers underwrite older buildings.
What drives value in Santa Monica
- Gap between in-place rents and market rents on rent-controlled units
- Distance to the beach, Montana Ave, Main St and the Expo Line
- Unit mix, parking and condition of 1950s to 1970s stock
- Buyer pool of long-term local families and 1031 exchange buyers
Ask us for recent Santa Monica sales, current cap rates and price per unit for buildings like yours.
- Rent control
- Santa Monica has its own rent control law, administered by the Santa Monica Rent Control Board. It covers most multifamily buildings built before April 1979. Units can reset to market rent on vacancy under state law (Costa-Hawkins), and registration and fees apply.
- Transfer taxes
- Santa Monica is a separate city, so Measure ULA does not apply. Santa Monica charges its own transfer tax, plus an additional tax on high-value sales under Measure GS. Thresholds and rates change, so we confirm them for each sale.
- Statewide rules
- Buildings not covered by local rent control are often covered by California AB 1482, which caps annual increases and requires just cause for most evictions in buildings over 15 years old.
Owner questions
Does Measure ULA apply in Santa Monica?
No. ULA applies only in the City of Los Angeles. Santa Monica has its own transfer tax, including an added tax on high-value sales under Measure GS.
How does Santa Monica rent control affect my sale price?
Buyers price rent-controlled units on in-place rents plus expected turnover. Buildings with many long-term tenants paying far below market usually sell on price per unit rather than cap rate.
General information, not legal or tax advice. Rules and thresholds change; we confirm them for each sale.