West Hollywood Multifamily Investment
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1530 N Formosa Ave, West Hollywood, CA 90046
10-unit multifamily property in West Hollywood with assumable financing.
Property Size8,900 SF
Price / SF$348.31
Days on Market171
Property Features for 1530 N Formosa Ave
General Information
Standard status
Active
Size
8,900 SF
Class
B
Property subtype
Multifamily
Occupancy
100%
Investment Type
Stabilized
Net Operating Income
$176,249
Building Details
Year Built
1963
Units
10
Listing Agency:
Marcus & Millichap - Encino
Listed By:
Dana Brody · License #CA
Source:
Crexi
Added: Mar 17
Changed: Aug 22
Last Checked: Aug 31 at 2:57PM
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 Marcus & Millichap - Encino
Investment Insights
Based on property information with market context.
Located in West Hollywood, 1530 N. Formosa Avenue is a 10-unit multifamily property. The property features a mix of one- and two-bedroom units. The property has undergone capital improvements, including a Soft Story Seismic Retrofit, horizontal repiping, and a new roof. The property is positioned near Sunset Boulevard and major employment and entertainment hubs. The building size is 8900 square feet. The property benefits from assumable financing at 3.74% fixed through 2040.
Key Highlights
- Assumable financing at a low 3.74% fixed rate through 2040 provides a significant cost of capital advantage.
- Major capital improvements already completed, including Soft Story Seismic Retrofit, repiping, and new roof, reducing future capital expenditure risk.
- Located in prime West Hollywood, close to Sunset Boulevard and major employment/entertainment hubs, ensuring consistent tenant demand.
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
$143,208
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
4.62%
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%
$2,864,160
$2.9M
Cap Rate 7%
$2,045,829
$2.0M
Cap Rate 9%
$1,591,200
$1.6M
Market Conditions
NOI Build-Up for 8,900 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
$283.0K $31.80/SF
− Vacancy
−$22.6K −$2.54/SF
EGI
$260.4K $29.26/SF
− OpEx
−$117.2K −$13.17/SF
NOI
$143.2K $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%
$2,864,160
Cap Rate 7%
$2,045,829
Cap Rate 9%
$1,591,200
Alternative Uses
Best Use
Apartment 5plus
$2.05M
$1.79M – $2.39M
NOI $143,208 @ 7.0% cap · market cap 4.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.77M
$4.17M – $5.56M
NOI $333,552 @ 7.0% cap · market cap 10.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
780
Businesses Nearby
Explore this area
Business Placement
Demographics for 90046, CA
49,987
Population
31,929
Households
1.6
Avg Household Size
39
Median Age
63%
College-Educated
95%
High-School Grad
5.7 sq mi
ZIP Area
8,770
Density / Sq Mi
$94,259
Median Household Income
$65,607
Median Earnings
$2,204
Median Rent
$1,411,500
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 - 10-unit multifamily property in West Hollywood with assumable financing.
Where is this apartment building located?
The property is located at 1530 N Formosa Ave West Hollywood, CA.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: Assumable financing at a low 3.74% fixed rate through 2040 provides a significant cost of capital advantage.; Major capital improvements already completed, including Soft Story Seismic Retrofit, repiping, and new roof, reducing future capital expenditure risk.; Located in prime West Hollywood, close to Sunset Boulevard and major employment/entertainment hubs, ensuring consistent tenant demand.
