Eight-Unit Apartment
New
For Sale
$1,300,000
11528 Adco Ave, Downey, CA 90241
Two-story walk-up operating as regulated affordable housing under a recorded HOME Program covenant.
Property Size4,052 SF
Days on Market4
Property Features for 11528 Adco Ave
General Information
Standard status
Active
Size
4,052 SF
Property subtype
Multifamily
Occupancy
97%
Amenities
Affordability Already Recorded; Restricted through 2059. No re-entitlement, no community process.
• Section 8 Income by Covenant; Voucher acceptance is a recorded obligation; rents benchmarked to HUD FMR.
33 Years of Remaining Term Recorded 2004 on a 55-year schedule; nondiscrimination covenants perpetual.
Building Details
Building Size
4,052 SF
Units
8
Listed By:
Alex Scinta · License #License(s): CA: 02161763
(424) 405-3861
Source:
Marcusmillichap
Added: Sep 18
Last Checked: Sep 21 at 3:51AM
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 Alex Scinta
Investment Insights
Based on property information with market context.
This two-story walk-up apartment property was built in 1957 and includes eight units totaling 4,052 rentable square feet on a 7,405-square-foot corner lot. The unit mix comprises six studios, one 1-bed/1-bath apartment, and one 2-bed/1-bath apartment. Eight on-site parking spaces provide a 1:1 parking ratio.
The property is located at the corner of Adco Avenue and Neo Street in Downey, California. A HOME Program covenant recorded in 2004 governs the affordable-housing program through approximately July 2059. Rents are determined using HUD Fair Market Rent and AMI formulas, Section 8 vouchers are accepted under the covenant, and tenant incomes are re-certified annually by the City.
The property is located at the corner of Adco Avenue and Neo Street in Downey, California. A HOME Program covenant recorded in 2004 governs the affordable-housing program through approximately July 2059. Rents are determined using HUD Fair Market Rent and AMI formulas, Section 8 vouchers are accepted under the covenant, and tenant incomes are re-certified annually by the City.
Key Highlights
- Eight‑unit apartment property with 4,052 rentable square feet
- Six studios, one 1‑bed/1‑bath unit, and one 2‑bed/1‑bath unit
- Two‑story walk‑up built in 1957
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
$59,508
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
4.58%
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%
$1,190,160
$1.2M
Cap Rate 7%
$850,114
$850.1K
Cap Rate 9%
$661,200
$661.2K
Market Conditions
NOI Build-Up for 4,052 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
$113.3K $27.96/SF
− Vacancy
−$5.1K −$1.26/SF
EGI
$108.2K $26.70/SF
− OpEx
−$48.7K −$12.02/SF
NOI
$59.5K $14.69/SF
Area
Downey, CA
Vacancy
4.50%
Lease Rate
$27.96 /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%
$1,190,160
Cap Rate 7%
$850,114
Cap Rate 9%
$661,200
Alternative Uses
Best Use
Apartment 5plus
$850.1K
$743.9K – $991.8K
NOI $59,508 @ 7.0% cap · market cap 4.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.65M
$1.45M – $1.93M
NOI $115,725 @ 7.0% cap · market cap 8.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
690
Businesses Nearby
Explore this area
Business Placement
Demographics for 90241, CA
44,921
Population
15,100
Households
3
Avg Household Size
37
Median Age
25%
College-Educated
81%
High-School Grad
4.9 sq mi
ZIP Area
9,168
Density / Sq Mi
$84,375
Median Household Income
$43,319
Median Earnings
$1,884
Median Rent
$770,100
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?
Apartment building - Two-story walk-up operating as regulated affordable housing under a recorded HOME Program covenant.
Where is this apartment building located?
The property is located at 11528 Adco Ave Downey, 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: Eight‑unit apartment property with 4,052 rentable square feet; Six studios, one 1‑bed/1‑bath unit, and one 2‑bed/1‑bath unit; Two‑story walk‑up built in 1957
