Downey Multifamily Investment
For Sale
$2,700,000
12135 Downey Avenue, Downey, CA 90242
Five units, each with two bedrooms and two bathrooms.
Property Size5,409 SF
Price / SF$499.17
Days on Market247
Property Features for 12135 Downey Avenue
General Information
Standard status
Active
Size
5,409 SF
Total Parking Spaces
5
Property subtype
Residential Income / Res Income 2-4 Units
Zoning
Assessor
Net Operating Income
$137,707
Building Details
Year Built
1988
Buildings
2
Units
5
Listing Agency:
4U Realty
(562) 786-1777
Listed By:
Maria Menjivar · License #01761847
Source:
Compass
Added: Dec 20, 2025
Changed: Aug 23
Last Checked: Aug 24 at 12:21PM
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 4U Realty
Investment Insights
Based on property information with market context.
This multifamily property is located in a growing city and features five units. Each unit includes two bedrooms and two bathrooms. There are five two-car garages, providing a total of ten parking spaces. The property offers potential for adding Accessory Dwelling Units (ADUs). A community laundry room is present, offering additional income potential. The property is located close to restaurants and movie theaters at Downey Landing, Promenade, and Stonewood Mall. It is also situated approximately five minutes away from PIH Hospital and Kaiser Permanente, with convenient access to the 105, 710, and 605 freeways.
Key Highlights
- Five units, each with 2 bedrooms and 2 bathrooms, offering immediate rental income potential.
- Great potential to add ADUs for increased income and property value.
- Includes five 2‑car garages (10 parking spaces total).
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
$79,437
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
2.94%
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%
$1,588,740
$1.6M
Cap Rate 7%
$1,134,814
$1.1M
Cap Rate 9%
$882,633
$882.6K
Market Conditions
NOI Build-Up for 5,409 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
$151.2K $27.96/SF
− Vacancy
−$6.8K −$1.26/SF
EGI
$144.4K $26.70/SF
− OpEx
−$65.0K −$12.02/SF
NOI
$79.4K $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%
$1,588,740
Cap Rate 7%
$1,134,814
Cap Rate 9%
$882,633
Alternative Uses
Best Use
Apartment 5plus
$1.13M
$993.0K – $1.32M
NOI $79,437 @ 7.0% cap · market cap 2.94%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.21M
$1.93M – $2.57M
NOI $154,481 @ 7.0% cap · market cap 5.72%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,352
Businesses Nearby
Explore this area
Business Placement
Demographics for 90242, CA
42,939
Population
12,756
Households
3.4
Avg Household Size
36
Median Age
24%
College-Educated
79%
High-School Grad
4.5 sq mi
ZIP Area
9,542
Density / Sq Mi
$83,238
Median Household Income
$42,064
Median Earnings
$1,874
Median Rent
$676,100
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 - Five units, each with two bedrooms and two bathrooms.
Where is this apartment building located?
The property is located at 12135 Downey Avenue Downey, CA.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: Five units, each with 2 bedrooms and 2 bathrooms, offering immediate rental income potential.; Great potential to add ADUs for increased income and property value.; Includes five 2‑car garages (10 parking spaces total).
