Long Beach Multifamily Investment
For Sale
$2,800,000
1070 Chestnut Avenue, Long Beach, CA 90813
12-unit multifamily property in Long Beach's Willmore Historic District.
Property Size6,480 SF
Price / SF$432.10
Days on Market235
Property Features for 1070 Chestnut Avenue
General Information
Standard status
Active
Size
6,480 SF
Total Parking Spaces
6
Property subtype
Residential Income / Condominium
Zoning
Assessor
Net Operating Income
$165,291
Building Details
Year Built
1956
Buildings
1
Units
12
Listing Agency:
Keller Williams Realty Downey
Listed By:
Robert Stepp · License #01456379
(310) 774-3740
Source:
Compass
Added: Jan 11
Changed: Sep 2
Last Checked: Sep 1 at 11:43PM
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 Keller Williams Realty Downey
Investment Insights
Based on property information with market context.
The 12-unit multifamily property at 1070 Chestnut Avenue is located in the Willmore Historic District submarket of Long Beach, California. The property features twelve 1-bedroom, 1-bath units, offering a functional and consistent unit mix with a combination of original character and select interior upgrades. The property has benefited from several recent capital improvements, reducing near-term maintenance exposure and enhancing operational stability. These include a new roof, windows, and upgraded electrical system, Line-X sewer line replacement, recently installed individual water heaters, and upgraded wall-mounted furnaces in select units. Each unit is individually metered for gas and electricity and features its own water heater, supporting efficient utility management and expense control. The asset produces stable, reliable cash flow, with a majority of tenants participating in subsidized housing programs through the Housing Authority of the City of Los Angeles and the Housing Authority of the City of Long Beach. Additional income is generated through on-site laundry facilities. The property offers multiple avenues for further revenue growth, including income from six rear parking spaces and ADU potential in the rear parking area. Each unit has a separate APN, creating the potential for future individual condominium sales. The property benefits from convenient access to major transportation corridors, including the nearby 710 Freeway, providing connectivity to employment centers throughout Long Beach and greater Los Angeles. The property size is 6480 square feet.
Key Highlights
- Stable, reliable cash flow due to subsidized housing participation, mitigating vacancy risks.
- Recent capital improvements including a new roof, windows, upgraded electrical, sewer line replacement, and individual water heaters reduce near‑term maintenance costs.
- Potential for increased revenue through parking fees, ADU development, and future condominium conversion.
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
$137,255
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
4.90%
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%
$2,745,100
$2.7M
Cap Rate 7%
$1,960,786
$2.0M
Cap Rate 9%
$1,525,056
$1.5M
Market Conditions
NOI Build-Up for 6,480 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
$260.5K $40.20/SF
− Vacancy
−$10.9K −$1.69/SF
EGI
$249.6K $38.51/SF
− OpEx
−$112.3K −$17.33/SF
NOI
$137.3K $21.18/SF
Area
ZIP 90813
Vacancy
4.20%
Lease Rate
$40.20 /SF/Yr
Expense Ratio
45.00%
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%
$2,745,100
Cap Rate 7%
$1,960,786
Cap Rate 9%
$1,525,056
Alternative Uses
Best Use
Apartment 5plus
$1.96M
$1.72M – $2.29M
NOI $137,255 @ 7.0% cap · market cap 4.90%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$2.13M
$1.86M – $2.48M
NOI $148,941 @ 7.0% cap · market cap 5.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,854
Businesses Nearby
Explore this area
Business Placement
Demographics for 90813, CA
54,565
Population
18,603
Households
2.9
Avg Household Size
32
Median Age
16%
College-Educated
63%
High-School Grad
3.1 sq mi
ZIP Area
17,602
Density / Sq Mi
$50,302
Median Household Income
$31,450
Median Earnings
$1,578
Median Rent
$543,700
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - 12-unit multifamily property in Long Beach's Willmore Historic District.
Where is this apartment building located?
The property is located at 1070 Chestnut Avenue Long Beach, CA.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Stable, reliable cash flow due to subsidized housing participation, mitigating vacancy risks.; Recent capital improvements including a new roof, windows, upgraded electrical, sewer line replacement, and individual water heaters reduce near‑term maintenance costs.; Potential for increased revenue through parking fees, ADU development, and future condominium conversion.
