Two-Home Multifamily
New
For Sale
$998,500
Pending
27765 Ellis Ave, Menifee, CA 92585
Two residences occupy one lot, including a custom main home and a newly built ADU.
Property Size4,032 SF
Lot Size1.00 Acre
Days on Market2
Property Features for 27765 Ellis Ave
General Information
Standard status
Pending
Size
4,032 SF
Lot size
1.00 Acre
Property subtype
Investment
Additional Details
Multifamily Units
2
Amenities
solar panels
Building Details
Building Size
4,032 SF
Year Built
1987
Buildings
2
Stories
2
Units
2
Listing Agency:
Coldwell Banker Realty
Listed By:
Miguel Valeriano Martine · License #02098128
(714) 392-3525
Source:
Elliman
Added: Sep 21
Last Checked: Sep 21 at 4:34AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This multifamily property includes two residences on a single 1-acre lot in Menifee. The front residence is a custom single-family home, while a brand-new ADU completed in 2026 provides a second dwelling on the property.
The main house is equipped with 52 Tesla solar panels, and the associated solar credits transfer fully to the next owner. The flat lot is located at 27765 Ellis Ave, with bike and walk scores of 27 and 8, respectively, reflecting a car-dependent setting with limited bike access.
The main house is equipped with 52 Tesla solar panels, and the associated solar credits transfer fully to the next owner. The flat lot is located at 27765 Ellis Ave, with bike and walk scores of 27 and 8, respectively, reflecting a car-dependent setting with limited bike access.
Key Highlights
- Two residences situated on one 1‑acre lot
- Brand‑new ADU completed in 2026
- Custom single‑family residence at the front of the property
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
$50,029
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
5.01%
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%
$1,000,580
$1.0M
Cap Rate 7%
$714,700
$714.7K
Cap Rate 9%
$555,878
$555.9K
Market Conditions
NOI Build-Up for 4,032 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
$96.8K $24.00/SF
− Vacancy
−$5.8K −$1.44/SF
EGI
$91.0K $22.56/SF
− OpEx
−$40.9K −$10.15/SF
NOI
$50.0K $12.41/SF
Area
Menifee, CA
Vacancy
6.00%
Lease Rate
$24.00 /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%
$1,000,580
Cap Rate 7%
$714,700
Cap Rate 9%
$555,878
Alternative Uses
Best Use
Apartment 5plus
$714.7K
$625.4K – $833.8K
NOI $50,029 @ 7.0% cap · market cap 5.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.02M
$894.1K – $1.19M
NOI $71,531 @ 7.0% cap · market cap 7.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
23
Businesses Nearby
Explore this area
Business Placement
Demographics for 92585, CA
24,887
Population
8,447
Households
2.9
Avg Household Size
36
Median Age
20%
College-Educated
85%
High-School Grad
17.1 sq mi
ZIP Area
1,455
Density / Sq Mi
$97,898
Median Household Income
$46,523
Median Earnings
$2,200
Median Rent
$499,800
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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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?
Multifamily property - Two residences occupy one lot, including a custom main home and a newly built ADU.
Where is this multifamily property located?
The property is located at 27765 Ellis Ave Menifee, CA.
What is the asking price?
The asking price for this property is $998,500.
What are key features of this property?
This property features: Two residences situated on one 1‑acre lot; Brand‑new ADU completed in 2026; Custom single‑family residence at the front of the property
