Four-Unit Income
For Sale
$2,450,000
1222 Corona St, Hermosa Beach, CA 90254
Fully occupied four-unit income property on a sizable land assemblage with redevelopment options for qualified buyers.
Property Size3,200 SF
Price / SF$318.55
Days on Market87
Property Features for 1222 Corona St
General Information
Standard status
Active
Size
3,200 SF
Property subtype
Multifamily
Occupancy
100%
Additional Details
Business Included
Yes
Multifamily Units
4
Amenities
Priced at Only $765/SF for the Existing 4 Income-Producing Units
Exceptional Land Basis of Just $318/SF — Well Below Comparable Land Values
Investment Makes Sense as Both a Cash-Flow Asset and a Future Development Opportunity
Future Development Potential Comes at a Significant Discount to Current Land Values
City Allows for the Future Construction of Two New Single-Family Homes with an ADU Behind Each Residence (Buyer to Verify)
Seller May Consider Seller Financing for Qualified Buyers
Building Details
Building Size
3,200 SF
Units
4
Tenancy
Multi
Listed By:
Jon Weir · License #License(s): CA: 02038545
(424) 405-3855
Source:
Marcusmillichap
Added: Jun 11
Changed: Aug 7
Last Checked: Sep 5 at 3:52AM
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 Jon Weir
Investment Insights
Based on property information with market context.
The subject property is a fully occupied four-unit income-producing asset configured as a quadplex. It is offered for sale on a larger-than-average land assemblage totaling approximately 7,691 square feet. The seller states seller finance is available and that flexible terms may be offered to qualified buyers. The site is presented with redevelopment optionality, including a possible plan for two single-family residences and two accessory dwelling units (ADUs), with all feasibility subject to buyer verification with the City of Hermosa Beach.
The property is located at 1222 Corona St in Hermosa Beach, California. The offering is marketed as a distinctive land assemblage opportunity within the immediate area, where the larger buildable envelope is described as uncommon.
For investors or end-users, the asset provides immediate in-place rental occupancy as well as an outlined path toward future reconfiguration, subject to confirmation of zoning and development standards. Buyers who value flexibility may find the combination of an operating four-unit structure and a redevelopment concept—two single-family homes plus two ADUs—useful, provided they complete their own due diligence with the city.
The property is located at 1222 Corona St in Hermosa Beach, California. The offering is marketed as a distinctive land assemblage opportunity within the immediate area, where the larger buildable envelope is described as uncommon.
For investors or end-users, the asset provides immediate in-place rental occupancy as well as an outlined path toward future reconfiguration, subject to confirmation of zoning and development standards. Buyers who value flexibility may find the combination of an operating four-unit structure and a redevelopment concept—two single-family homes plus two ADUs—useful, provided they complete their own due diligence with the city.
Key Highlights
- Fully occupied four‑unit income property on an approximately 7,691 sq ft land assemblage in Hermosa Beach
- Seller offering flexible terms to qualified buyers, with seller financing available
- Generates income as a four‑unit asset while offering redevelopment potential
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
$134,313
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
5.48%
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%
$2,686,260
$2.7M
Cap Rate 7%
$1,918,757
$1.9M
Cap Rate 9%
$1,492,367
$1.5M
Market Conditions
NOI Build-Up for 7,691 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
$207.7K $27.00/SF
− Vacancy
−$15.8K −$2.05/SF
EGI
$191.9K $24.95/SF
− OpEx
−$57.6K −$7.48/SF
NOI
$134.3K $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%
$2,686,260
Cap Rate 7%
$1,918,757
Cap Rate 9%
$1,492,367
Alternative Uses
Best Use
Multifamily LT 5
$1.92M
$1.68M – $2.24M
NOI $134,313 @ 7.0% cap · market cap 5.48%
Second Best
Apartment 5plus
$1.77M
$1.55M – $2.06M
NOI $123,754 @ 7.0% cap · market cap 5.05%
Theoretical Best
Office A
$4.12M
$3.60M – $4.80M
NOI $288,241 @ 7.0% cap · market cap 11.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
4
Residential units
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
3,046
Businesses Nearby
Explore this area
Business Placement
Demographics for 90254, CA
19,736
Population
10,454
Households
1.9
Avg Household Size
40
Median Age
77%
College-Educated
98%
High-School Grad
1.4 sq mi
ZIP Area
14,097
Density / Sq Mi
$152,019
Median Household Income
$104,385
Median Earnings
$2,812
Median Rent
$2,000,001
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?
Quadplex - Fully occupied four-unit income property on a sizable land assemblage with redevelopment options for qualified buyers.
Where is this quadplex located?
The property is located at 1222 Corona St Hermosa Beach, CA.
What is the asking price?
The asking price for this property is $2,450,000.
What are key features of this property?
This property features: Fully occupied four‑unit income property on an approximately 7,691 sq ft land assemblage in Hermosa Beach; Seller offering flexible terms to qualified buyers, with seller financing available; Generates income as a four‑unit asset while offering redevelopment potential
