Renovated Apartment Building Conversion
For Sale
$29,525,000
14972 Sand Canyon Ave, Irvine, CA 92618
Built in 1986 and renovated in 2020, this 148-unit building is positioned for permanent housing conversion planning in Irvine.
Property Size88,239 SF
Price / SF$334.60
Days on Market49
Property Features for 14972 Sand Canyon Ave
General Information
Standard status
Active
Size
88,239 SF
Property subtype
Multifamily
Additional Details
Cap Rate
8.11%
Multifamily Units
148
Building Details
Building Size
88,239 SF
Year Built
1986
Year Renovated
2020
Listing Agency:
Sperry Commercial Global Affiliates Irvine
(310) 704-9109
Listed By:
Luis Vazquez · License #CalDRE #00841513
Source:
Sperrycga
Added: Jun 29
Changed: Aug 8
Last Checked: Aug 16 at 5:13AM
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 Sperry Commercial Global Affiliates Irvine
Investment Insights
Based on property information with market context.
This for-sale multifamily apartment building was built in 1986 and renovated in 2020. The property contains 148 units within an 88,239 SF building. Public remarks also note the asset is listed on the National Register of Historic Places.
According to the provided remarks, city planning has indicated a roadmap to conversion to permanent housing. The listing also describes the opportunity as a permanent housing conversion initiative in a high-demand area of Irvine.
For buyers evaluating residential income properties with a conversion pathway, this asset offers a defined redevelopment direction referenced by city planning, alongside the existing institutional characteristics of a stabilized apartment building. The combination of unit count, recent renovation, and the cited planning roadmap may be relevant for operators and capital partners focused on transitioning the property to permanent housing use. Interested parties should review the conversion pathway details and requirements directly with the applicable agencies.
According to the provided remarks, city planning has indicated a roadmap to conversion to permanent housing. The listing also describes the opportunity as a permanent housing conversion initiative in a high-demand area of Irvine.
For buyers evaluating residential income properties with a conversion pathway, this asset offers a defined redevelopment direction referenced by city planning, alongside the existing institutional characteristics of a stabilized apartment building. The combination of unit count, recent renovation, and the cited planning roadmap may be relevant for operators and capital partners focused on transitioning the property to permanent housing use. Interested parties should review the conversion pathway details and requirements directly with the applicable agencies.
Key Highlights
- 148‑unit apartment building built in 1986 and renovated in 2020
- Building size: 88,239 SF
- City planning has indicated a roadmap to conversion to permanent housing
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
$1,888,533
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
6.40%
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%
$37,770,660
$37.8M
Cap Rate 7%
$26,979,043
$27.0M
Cap Rate 9%
$20,983,700
$21.0M
Market Conditions
NOI Build-Up for 88,239 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
$3.55M $40.20/SF
− Vacancy
−$113.5K −$1.29/SF
EGI
$3.43M $38.91/SF
− OpEx
−$1.55M −$17.51/SF
NOI
$1.89M $21.40/SF
Area
ZIP 92618
Vacancy
3.20%
Lease Rate
$40.20 /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%
$37,770,660
Cap Rate 7%
$26,979,043
Cap Rate 9%
$20,983,700
Alternative Uses
Best Use
Apartment 5plus
$26.98M
$23.61M – $31.48M
NOI $1,888,533 @ 7.0% cap · market cap 6.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$29.06M
$25.43M – $33.90M
NOI $2,034,043 @ 7.0% cap · market cap 6.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
148
Residential units
Location Intelligence
Trade Area within ½ mile
1,709
Businesses Nearby
Explore this area
Business Placement
Demographics for 92618, CA
57,488
Population
26,470
Households
2.2
Avg Household Size
35
Median Age
72%
College-Educated
97%
High-School Grad
20.7 sq mi
ZIP Area
2,777
Density / Sq Mi
$135,609
Median Household Income
$85,192
Median Earnings
$3,053
Median Rent
$1,153,400
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 - Built in 1986 and renovated in 2020, this 148-unit building is positioned for permanent housing conversion planning in Irvine.
Where is this apartment building located?
The property is located at 14972 Sand Canyon Ave Irvine, CA.
What is the asking price?
The asking price for this property is $29,525,000.
What are key features of this property?
This property features: 148‑unit apartment building built in 1986 and renovated in 2020; Building size: 88,239 SF; City planning has indicated a roadmap to conversion to permanent housing
