Quadplex With Separate
For Sale
$1,300,000
1040 W Reeve, Compton, CA 90220
Four residential units offer a balanced bedroom mix, individual utility metering, and flexible month-to-month occupancy.
Property Size4,008 SF
Days on Market8
Property Features for 1040 W Reeve
General Information
Standard status
Active
Size
4,008 SF
Property subtype
Investment
Units
Unit Mix
2 x 3BR/1BA, 2 x 2BR/1BA
Multifamily Units
4
Building Details
Building Size
4,008 SF
Year Built
1955
Stories
2
Units
4
Listed By:
Andrew Youngmark
(714) 861-5500
Source:
Elliman
Added: Sep 19
Changed: Sep 25
Last Checked: Sep 26 at 9:09AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Andrew Youngmark
Investment Insights
Based on property information with market context.
This 1955-built quadplex contains four residential units: two configured with 3 bedrooms and 1 bathroom, and two with 2 bedrooms and 1 bathroom. Each unit is separately metered and includes its own hot water tank. The property is professionally managed, while month-to-month occupancy gives a buyer flexibility to retain the existing manager, self-manage, or engage another management company. The current management agreement requires 30-Day advance notice for termination.
The property is located at 1040 W Reeve in Compton, California, near restaurants, shopping, public transportation, freeway access, LAX, and Compton High School. SoFi Stadium is identified as 10 miles away. The surrounding area has a walk score of 63, described as Somewhat Walkable, and a bike score of 50, described as Bikeable.
The property is located at 1040 W Reeve in Compton, California, near restaurants, shopping, public transportation, freeway access, LAX, and Compton High School. SoFi Stadium is identified as 10 miles away. The surrounding area has a walk score of 63, described as Somewhat Walkable, and a bike score of 50, described as Bikeable.
Key Highlights
- Four‑unit property with two 3‑bedroom/1‑bath units and two 2‑bedroom/1‑bath units
- Separate utility metering for each unit
- Individual hot water tank serving every unit
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$69,994
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.38%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,399,880
$1.4M
Cap Rate 7%
$999,914
$999.9K
Cap Rate 9%
$777,711
$777.7K
Market Conditions
NOI Build-Up for 4,008 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$108.2K $27.00/SF
− Vacancy
−$8.2K −$2.05/SF
EGI
$100.0K $24.95/SF
− OpEx
−$30.0K −$7.48/SF
NOI
$70.0K $17.46/SF
Area
Los Angeles County, CA
Vacancy
7.60%
Lease Rate
$27.00 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,399,880
Cap Rate 7%
$999,914
Cap Rate 9%
$777,711
Alternative Uses
Best Use
Multifamily LT 5
$999.9K
$874.9K – $1.17M
NOI $69,994 @ 7.0% cap · market cap 5.38%
Second Best
Apartment 5plus
$921.3K
$806.2K – $1.07M
NOI $64,492 @ 7.0% cap · market cap 4.96%
Theoretical Best
Office A
$2.15M
$1.88M – $2.50M
NOI $150,211 @ 7.0% cap · market cap 11.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
457
Businesses Nearby
Explore this area
Business Placement
Demographics for 90220, CA
50,412
Population
14,067
Households
3.6
Avg Household Size
33
Median Age
13%
College-Educated
68%
High-School Grad
6.9 sq mi
ZIP Area
7,306
Density / Sq Mi
$77,535
Median Household Income
$36,074
Median Earnings
$1,557
Median Rent
$514,600
Median Home Value
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Quadplex - Four residential units offer a balanced bedroom mix, individual utility metering, and flexible month-to-month occupancy.
Where is this quadplex located?
The property is located at 1040 W Reeve Compton, CA.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: Four‑unit property with two 3‑bedroom/1‑bath units and two 2‑bedroom/1‑bath units; Separate utility metering for each unit; Individual hot water tank serving every unit
