Santa Monica Multifamily Broker: Apartment Building Sales
Santa Monica is a rent-controlled coastal submarket that consistently commands some of the highest per-unit multifamily pricing in the Los Angeles Metro Area. Highlight has closed multiple transactions here, including properties near the Third Street Promenade and Montana Ave corridors, drawing on strong long-term demand from the Silicon Beach employment base.
Get a Free Broker Opinion of Value in Santa MonicaTransit Access
- Metro E Line (Expo) light rail to Downtown LA
- Big Blue Bus local network
- Highly bikeable beach-adjacent street grid
Local Retail
- Third Street Promenade
- Montana Ave and Main St retail corridors
- Santa Monica Pier and beachfront commercial district
Major Employers
- Silicon Beach tech employers (Snap Inc., and other media/tech firms)
- Santa Monica College
- Saint John’s Health Center
Santa Monica Multifamily Sales So Far This Year
Buildings built before 1978 are generally under rent control and trade differently than newer buildings, so we break them out separately. Confirmed Santa Monica sales through September 2026. Figures are shown only when there are enough sales to be meaningful.
Built Before 1978
- Median Price Per Unit
- $388,333
- 34 Santa Monica sales
- Median Price Per SF
- $398
- 34 Santa Monica sales
- Typical Cap Rate
- 4.81% – 5.96%
- 19 Santa Monica sales
Built 1978 or Later
- Median Price Per Unit
- $561,000
- 3 Santa Monica sales
- Median Price Per SF
- $485
- 3 Santa Monica sales
- Typical Cap Rate
- Not enough data
- Fewer than 5 Santa Monica sales reporting a cap rate
Curious what your own Santa Monica property could be worth? Try our free value calculator →
Selling an Apartment Building in Santa Monica vs. the City of Los Angeles
Santa Monica is not part of the City of Los Angeles, and that matters when you sell. Its rent control law, its yearly rent increase, its transfer tax, its earthquake retrofit program, and its answer to the new state transit-housing law are all Santa Monica’s own. The same building can face very different costs and rules a few blocks across the city line.
Santa Monica Rent Control, in Plain English
Santa Monica voters passed rent control in April 1979, and the city runs it through an elected Rent Control Board. It is separate from LA’s ordinance, and it has its own yearly increase, its own registration, and its own exemptions. Here is how to tell where your building stands.
- Rent can rise by the General Adjustment the Rent Control Board sets each year (2.6% from Sept 1, 2026)
- Each controlled unit has to be registered with the Rent Control Board
- Registration fees are due every year
- Owner-occupied properties of three units or fewer are exempt
- Once a building is more than 15 years old, the statewide AB 1482 cap may apply
- Confirm the status of your building with the Rent Control Board or an attorney before you price or sell
How much can rent go up each year?
Each September, the Rent Control Board sets the General Adjustment by resolution, and it comes with a dollar limit. For 2026 the adjustment is2.6%, with a $70 limit on the dollar increase. That is much tighter than the statewide AB 1482 cap (5% plus inflation, up to 10%), which is why Santa Monica buyers pay close attention to how far below market the current rents are.
Each figure applies from September 1 through the following August 31. Source: City of Santa Monica Rent Control Board resolutions 24-002, 25-001, and 26-001.
Four rent control rules every Santa Monica seller should know
- Market rent comes back only when a tenant leaves on their own. Under the state’s Costa-Hawkins law, an owner can set a new rent when a tenant moves out voluntarily, and Santa Monica has allowed this since 1999. Once a new tenant moves in, that rent is controlled again.
- Every controlled unit has to be registered. The city’s regulations cover landlord registration and re-registration of rent levels, plus annual registration fees. Buyers and their attorneys will ask for yours.
- The yearly increase is set by the Board, and it changes. It was 3% in 2024, 2.3% in 2025, and 2.6% in 2026, each with its own dollar limit. Use the current figure when you price, not the one from last year.
- Small owner-occupied buildings and newer buildings are treated differently. The city exempts owner-occupied properties of three units or fewer. Buildings built in 1979 or later are outside the rent caps, though the statewide AB 1482 cap may apply.
Confirm how these rules apply to your building with the Santa Monica Rent Control Board or a landlord-tenant attorney.
Measure GS: Santa Monica’s Own “Mansion Tax”
Santa Monica is its own city, so the City of Los Angeles’ Measure ULA does not apply here. Santa Monica has its own version instead. Voters passed Measure GS in November 2022, and since March 1, 2023 any sale of $8 million or more pays a city transfer tax of 5.6% of the entire price. Below $8 million, the city’s rate is 0.3% or 0.6%.
A seller needs a price of about $8,423,728 just to net the same as a sale at $7,999,999. Anywhere between $8,000,000 and that number, the seller takes home less.
| Sale Price | City Rate (on the full price) | Example |
|---|---|---|
| Under $5,000,000 | 0.3% $3 per $1,000 | $4,500,000 sale: $13,500 |
| $5,000,000 to $7,999,999 | 0.6% $6 per $1,000 | $6,500,000 sale: $39,000 |
| $8,000,000 and up (Measure GS) | 5.6% $56 per $1,000 | $9,000,000 sale: $504,000 |
Illustration only. LA County’s documentary transfer tax of $1.10 per $1,000 is added at every price. Rates from the LA County Registrar-Recorder. Who pays is set in the purchase contract, so talk to your tax advisor and escrow officer about your own sale.
What Measure GS means if you own a Santa Monica apartment building
- If your building is worth around $8 million, price it with the tax in mind. An offer of $8.1M can leave you with less than an offer of $7.95M. We run the net-to-seller math on every offer so you compare what you keep, not just the headline price.
- Buyers price their own exit too. A buyer who expects to resell above $8 million knows the next sale carries the 5.6% tax, and that shows up in what they will pay today.
- Most Santa Monica apartment sales fall well under the line. For a building under $5 million, the city tax is 0.3%, about $13,500 on a $4.5M sale. Measure GS mostly matters for larger buildings and portfolios.
Santa Monica vs. the City of Los Angeles: Which Costs More to Sell?
It depends on the price. Below $8 million, Santa Monica’s transfer tax is far lower than the City of LA’s, because LA’s Measure ULA starts at $5.4 million. At $8 million and up, Santa Monica’s Measure GS rate of 5.6% is higher than LA’s ULA rate of 4%. Here is the same price, either side of the line.
Difference: $231,000 less in transfer taxes on the Santa Monica side.
Difference: $103,500 more in transfer taxes on the Santa Monica side.
- Measure ULA (City of LA only)
- City transfer tax (LA or Santa Monica, including Measure GS)
- LA County transfer tax ($1.10 per $1,000)
Illustration only, before commissions and other closing costs. Rates from the LA County Registrar-Recorder and the City of Los Angeles Office of Finance (ULA thresholds for closings after June 30, 2026). Talk to your tax advisor about your own sale.
Three Moves to Make Before You List a Santa Monica Building
Take this year’s rent increase first
Buyers pay for the rent roll they see, not the one you could have had. If you have not taken the 2.6% General Adjustment, check the Rent Control Board’s notice rules and serve it before you list.
Look up your building in the seismic program
Santa Monica’s Seismic Retrofit Ordinance, adopted in March 2017, identified over 2,000 commercial and multifamily buildings as potentially vulnerable, most of them soft-story buildings with tuck-under parking. Owners on the list get an order to have the building analyzed by a licensed professional, and a building found non-compliant must be retrofitted on the city’s timeline. Being on the list is not a finding that a building is unsafe. Check the city’s searchable map or compliance schedule, and gather the engineer’s report, plans, and permits so a buyer does not have to ask.
Check whether SB 79 applies to your lot
SB 79, the state transit-housing law, took effect July 1, 2026 and sets minimum building standards within a half mile of transit stops. Four Metro E Line stops count in Santa Monica: Downtown Santa Monica, 17th Street/Santa Monica College, Bergamot Station, and Expo/Bundy. The city adopted an ordinance, effective August 27, 2026, that excludes six of its seven transit zones until 2030, and sites with designated historic resources are excluded too. The city’s own map is approximate, so confirm your parcel with the city and ask us to price it both ways.
Santa Monica is a repeat market for us: we have closed sales here, including829 Euclid St.
What Santa Monica Apartment Buildings Sell For
Santa Monica’s older, rent-controlled buildings sold for a median of $388,333 per unit in January-September 2026, across34 sales, with cap rates typically between 4.81% and 5.96%. Here is how that compares with the other neighborhoods we cover.
Source: Highlight Multifamily Group analysis of CoStar sold multifamily comps. Neighborhoods with fewer than 3 sales are left out.
What to Gather Before Selling a Santa Monica Apartment Building
- Current rent roll with each tenant’s move-in date and current rent
- Proof the building’s Rent Control Board registration and annual fees are current
- Copies of the last General Adjustment notices served
- Seismic program paperwork: the city’s order, the engineer’s analysis, plans, permits, and sign-off (if your building is on the city’s list)
- Your SB 721 balcony and stair inspection report, if the building has elevated wood balconies, decks, or stairs (see our SB 721 guide)
- Your parcel’s transit-zone status for SB 79 from the city
- Two years of operating expenses and utility bills
- Any buyout agreements, relocation payments, or pending tenant matters
- Leases, including any pet, parking, or storage agreements
Not sure where to start? We will walk you through it as part of a free Broker Opinion of Value. Request yours here.
Thinking of Selling an Apartment Building in Santa Monica?
Santa Monica Multifamily FAQs
What is the price per unit for an apartment building in Santa Monica?
Among buildings built before 1978 sold in Santa Monica so far in 2026, the median price per unit was $388,333 across 34 sales, and the median price per square foot was $398. Figures are through September 2026 and move with the market.
What cap rate do Santa Monica apartment buildings sell for?
Buildings built before 1978 sold in Santa Monica in 2026 had a typical cap rate range of 4.81% – 5.96%, based on 19 sales that reported one (the middle half of those sales). Cap rates vary with building age, condition, and rent levels, so your building can sit above or below the range.
Does rent control apply to apartment buildings in Santa Monica?
Santa Monica is a separate city with its own rent control law, administered by the Santa Monica Rent Control Board, so the City of Los Angeles rules do not apply there. Which rules cover a building depends on its age and registration, so confirm with the city or an attorney before you price or sell.
What is Measure GS in Santa Monica?
Measure GS is Santa Monica’s transfer tax on sales of $8 million or more, in effect since March 1, 2023. At $8 million and up, the city tax is 5.6% of the entire sale price, compared with 0.6% from $5 million to just under $8 million and 0.3% below $5 million. LA County’s $1.10 per $1,000 is added on top. Measure ULA does not apply in Santa Monica because it is a separate city.
How much can landlords raise rent in Santa Monica in 2026?
For rent-controlled units, the Santa Monica Rent Control Board set the 2026 General Adjustment at 2.6%, with a $70 limit on the dollar increase, effective September 1, 2026. It was 2.3% (with a $60 limit) in 2025 and 3% (with a $76 limit) in 2024. Santa Monica’s rules are separate from the City of Los Angeles.
Can I reset the rent when a tenant moves out of a Santa Monica rent-controlled unit?
Usually, yes, if the tenant leaves voluntarily. State law (Costa-Hawkins) lets an owner set a new rent for the next tenant, and Santa Monica has followed it since 1999. Once the new tenant moves in, the unit is controlled again at the new rent. Confirm the details with the Santa Monica Rent Control Board or an attorney.
Is it cheaper to sell an apartment building in Santa Monica or in the City of Los Angeles?
Below $8 million, usually yes. On a $6 million sale, transfer taxes are about $42,600 in Santa Monica and $273,600 in the City of LA, where Measure ULA applies. At $8 million and up, Santa Monica’s Measure GS rate of 5.6% makes it costlier: on a $9 million sale, about $513,900 in Santa Monica versus $410,400 in the City of LA. These figures are before commissions and other closing costs.
Do Santa Monica apartment buildings need a seismic retrofit?
Some do. Santa Monica’s Seismic Retrofit Ordinance, adopted in March 2017, identified over 2,000 commercial and multifamily buildings as potentially vulnerable, most of them soft-story buildings with tuck-under parking. Owners on the city’s list receive an order to have the building analyzed by a licensed professional, and a building found non-compliant must be retrofitted on the city’s timeline. Being on the list is not a finding that a building is unsafe.
Does SB 79 apply to Santa Monica apartment buildings?
SB 79 took effect July 1, 2026 and sets minimum building standards within a half mile of transit stops, including four Metro E Line stops in Santa Monica. The city adopted an ordinance, effective August 27, 2026, that excludes six of its seven transit zones from SB 79 until 2030, and sites with designated historic resources are excluded too. The city’s map is approximate, so confirm your parcel with the city.
What apartment buildings has Highlight sold in Santa Monica?
Highlight has closed sales in Santa Monica, including 829 Euclid St (10 units, $4.53M), 1127 18th St (7 units, $2.93M), and 1443 18th St (development site, $2.50M). Every closed sale is listed with its details on our closed sales page.
829 Euclid St · 1127 18th St · 1443 18th St · All closed sales
Why do investors buy apartment buildings in Santa Monica?
Santa Monica is in Westside LA, with a Walk Score of 83 (Very Walkable, Very Bikeable) and a Transit Score of 60. Transit includes Metro E Line (Expo) light rail to Downtown LA. Nearby employers and anchors include Silicon Beach tech employers (Snap Inc., and other media/tech firms), Santa Monica College, and Saint John’s Health Center. Walkable, transit-connected neighborhoods with local jobs tend to keep renter demand steady.
Are there apartment buildings for sale in Santa Monica right now?
We do not have an active Santa Monica listing at the moment. Contact us and we will tell you about upcoming and off-market opportunities as they arise.
What is my Santa Monica apartment building worth?
Start with our free property value calculator, which prices your building using Santa Monica's own 2026 sales. Then request a free Broker Opinion of Value for a number based on your actual rent roll, expenses, and condition.
Free property value calculator · Free Broker Opinion of Value
Nearby markets we serve: Brentwood, West Hollywood, West LA
Own an Apartment Building in Santa Monica?
Get a free, confidential Broker Opinion of Value.