14-Unit Apartment
For Sale
Contact for pricing
1940 Chestnut Ave, Long Beach, CA 90813
Established multifamily property with separately metered utilities, a varied unit mix, and two vacant units available for lease-up.
Property Size9,437 SF
Price / SF$339.09
Days on Market8
Property Features for 1940 Chestnut Ave
General Information
Standard status
Active
Size
9,437 SF
Total Parking Spaces
14
Property subtype
Multifamily
Zoning
R-2-N
Occupancy
83%
Investment Type
Stabilized
Net Operating Income
$220,261
Units
Unit Mix
10 x 2+1, 2 x studio, 2 x 3+2
Multifamily Units
14
Additional Details
Asking Price
$3,200,000
Utilities to Site
Yes
Building Details
Year Built
1946
Units
14
Tenancy
Multi
Listing Agency:
Lyon Stahl Investment Real Estate
Listed By:
Taylor Avakian · License #CA 02060040
(916) 996-4421
Source:
Crexi
Added: Aug 28
Changed: Sep 3
Last Checked: Sep 3 at 2:38AM
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 Lyon Stahl Investment Real Estate
Investment Insights
Based on property information with market context.
This 14-unit apartment property was constructed in 1946 and contains 9,437 square feet. The unit mix includes ten 2+1 apartments, two studios, and two 3+2 apartments. Two units are currently vacant, while the occupied units provide an established tenancy profile. Separate utility metering supports straightforward operating administration, and the property’s expense-to-EGI ratio is 33%.
Located at 1940 Chestnut Ave in Long Beach, California, the property is zoned R-2-N. Existing rents are reported at 5.3% below market rates, providing a measurable gap between current and market rent levels. The asset is governed by AB 1482, California’s Tenant Protection Act, with rent increases for existing tenancies capped at 5% plus CPI.
Located at 1940 Chestnut Ave in Long Beach, California, the property is zoned R-2-N. Existing rents are reported at 5.3% below market rates, providing a measurable gap between current and market rent levels. The asset is governed by AB 1482, California’s Tenant Protection Act, with rent increases for existing tenancies capped at 5% plus CPI.
Key Highlights
- 14‑unit apartment property totaling 9,437 SF
- Unit mix includes ten 2+1 units, two studios, and two 3+2 units
- Two vacant units available for lease‑up
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
$199,889
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
6.25%
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%
$3,997,780
$4.0M
Cap Rate 7%
$2,855,557
$2.9M
Cap Rate 9%
$2,220,989
$2.2M
Market Conditions
NOI Build-Up for 9,437 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
$379.4K $40.20/SF
− Vacancy
−$15.9K −$1.69/SF
EGI
$363.4K $38.51/SF
− OpEx
−$163.5K −$17.33/SF
NOI
$199.9K $21.18/SF
Area
ZIP 90813
Vacancy
4.20%
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%
$3,997,780
Cap Rate 7%
$2,855,557
Cap Rate 9%
$2,220,989
Alternative Uses
Best Use
Apartment 5plus
$2.86M
$2.50M – $3.33M
NOI $199,889 @ 7.0% cap · market cap 6.25%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$3.10M
$2.71M – $3.62M
NOI $216,908 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,402
Businesses Nearby
Explore this area
Business Placement
Demographics for 90813, CA
54,565
Population
18,603
Households
2.9
Avg Household Size
32
Median Age
16%
College-Educated
63%
High-School Grad
3.1 sq mi
ZIP Area
17,602
Density / Sq Mi
$50,302
Median Household Income
$31,450
Median Earnings
$1,578
Median Rent
$543,700
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 - Established multifamily property with separately metered utilities, a varied unit mix, and two vacant units available for lease-up.
Where is this apartment building located?
The property is located at 1940 Chestnut Ave Long Beach, CA.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: 14‑unit apartment property totaling 9,437 SF; Unit mix includes ten 2+1 units, two studios, and two 3+2 units; Two vacant units available for lease‑up
