Gardena Multifamily Investment
For Sale
$1,550,000
1236 W 168th Street, Gardena, CA 90247
Fully occupied 5-unit property with income and growth potential.
Property Size5,465 SF
Price / SF$283.62
Days on Market112
Property Features for 1236 W 168th Street
General Information
Standard status
Active
Size
5,465 SF
Property subtype
General Commercial
Amenities
Electric Dryer, Dryer
3
Composition
5 Parking Spaces.
Garden/Lawn
7093
Garden. Public Transport.
Building Details
Year Built
1961
Listing Agency:
Truth Realty
(805) 760-5595
Listed By:
Sherry Simpson · License #00757181
Source:
Xome
Added: May 5
Changed: Aug 23
Last Checked: Aug 23 at 10:48AM
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 Truth Realty
Investment Insights
Based on property information with market context.
This fully occupied 5-unit residential income property in Gardena, California, presents an investment opportunity with immediate cash flow and a history of consistent occupancy. The property's rents are currently below market value, offering potential buyers the chance to increase revenue by adjusting rents to market rates over time. On-site parking adds convenience for tenants, contributing to tenant satisfaction and retention. Located in Gardena's central South Bay, the property provides tenants with convenient access to employment centers, freeways, shopping, and dining options, making it a desirable rental location. This property may suit investors looking to expand their portfolio or buyers seeking a stabilized asset. The unit mix is fully occupied, providing immediate income. The location has a walk score of 74, indicating it is very walkable, a bike score of 55, indicating it is bikeable, and a transit score of 41, indicating some transit options are available.
Key Highlights
- Fully occupied 5‑unit residential property provides immediate cash flow.
- Significant upside potential to increase revenue by raising rents to market rate.
- Convenient on‑site parking for tenants.
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
$87,936
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
5.67%
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%
$1,758,720
$1.8M
Cap Rate 7%
$1,256,229
$1.3M
Cap Rate 9%
$977,067
$977.1K
Market Conditions
NOI Build-Up for 5,465 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
$173.8K $31.80/SF
− Vacancy
−$13.9K −$2.54/SF
EGI
$159.9K $29.26/SF
− OpEx
−$71.9K −$13.17/SF
NOI
$87.9K $16.09/SF
Area
Los Angeles County, CA
Vacancy
8.00%
Lease Rate
$31.80 /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%
$1,758,720
Cap Rate 7%
$1,256,229
Cap Rate 9%
$977,067
Alternative Uses
Best Use
Apartment 5plus
$1.26M
$1.10M – $1.47M
NOI $87,936 @ 7.0% cap · market cap 5.67%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.93M
$2.56M – $3.41M
NOI $204,816 @ 7.0% cap · market cap 13.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,111
Businesses Nearby
Explore this area
Business Placement
Demographics for 90247, CA
48,543
Population
17,076
Households
2.8
Avg Household Size
39
Median Age
27%
College-Educated
78%
High-School Grad
3.8 sq mi
ZIP Area
12,774
Density / Sq Mi
$73,851
Median Household Income
$37,000
Median Earnings
$1,751
Median Rent
$640,500
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 - Fully occupied 5-unit property with income and growth potential.
Where is this apartment building located?
The property is located at 1236 W 168th Street Gardena, CA.
What is the asking price?
The asking price for this property is $1,550,000.
What are key features of this property?
This property features: Fully occupied 5‑unit residential property provides immediate cash flow.; Significant upside potential to increase revenue by raising rents to market rate.; Convenient on‑site parking for tenants.
