Boutique Multifamily with Detached
For Sale
Contact for pricing
2423 L ST, Sacramento, CA 95816
Six remodeled studio apartments plus two newly built detached ADUs provide a mix of existing rentals and new construction.
Property Size4,524 SF
Price / SF$419.98
Days on Market69
Property Features for 2423 L ST
General Information
Standard status
Active
Size
4,524 SF
Property subtype
Multifamily
Zoning
R-3A-SPD
Net Operating Income
$102,374
Additional Details
Fenced Yard
Yes
Multifamily Units
8
Building Details
Year Built
1900
Buildings
2
Stories
2
Units
8
Tenancy
Multi
Listing Agency:
Colliers - Sacramento, California
Listed By:
Trevor Meleski · License #02245229
(916) 563-3071
Source:
Crexi
Added: Jul 2
Changed: Sep 6
Last Checked: Sep 7 at 6:23AM
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 Colliers - Sacramento, California
Investment Insights
Based on property information with market context.
2423 L Street is a boutique multifamily property featuring six large studio apartments in the front building. The studio units have been tastefully remodeled, supporting an efficient rental layout.
Behind the main structure are two newly constructed, detached ADUs. Each ADU offers a 2-bedroom/1-bathroom design with approximately 600 square feet of living area.
Recent capital improvements include a new roof on the front building (2024), replacement and upsizing of the sewer lateral with new 4-inch ABS piping (2026), and a main building electrical upgrade with Square D panels (2019). The property also includes extensive dry rot remediation, a complete exterior repaint (2026), updated landscaping with new plantings, and all-new perimeter fencing (2026). Four of the six studio units have been renovated, complementing the two newly completed ADUs.
Behind the main structure are two newly constructed, detached ADUs. Each ADU offers a 2-bedroom/1-bathroom design with approximately 600 square feet of living area.
Recent capital improvements include a new roof on the front building (2024), replacement and upsizing of the sewer lateral with new 4-inch ABS piping (2026), and a main building electrical upgrade with Square D panels (2019). The property also includes extensive dry rot remediation, a complete exterior repaint (2026), updated landscaping with new plantings, and all-new perimeter fencing (2026). Four of the six studio units have been renovated, complementing the two newly completed ADUs.
Key Highlights
- Six studio apartments plus two newly constructed detached ADUs for 8 total rental units
- Two detached ADUs include modern 2‑bedroom/1‑bath layouts with about 600 SF each
- Four of the six studio units have been renovated
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
$71,063
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
3.74%
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%
$1,421,260
$1.4M
Cap Rate 7%
$1,015,186
$1.0M
Cap Rate 9%
$789,589
$789.6K
Market Conditions
NOI Build-Up for 4,524 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
$135.7K $30.00/SF
− Vacancy
−$6.5K −$1.44/SF
EGI
$129.2K $28.56/SF
− OpEx
−$58.1K −$12.85/SF
NOI
$71.1K $15.71/SF
Area
Sacramento, CA
Vacancy
4.80%
Lease Rate
$30.00 /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%
$1,421,260
Cap Rate 7%
$1,015,186
Cap Rate 9%
$789,589
Alternative Uses
Best Use
Apartment 5plus
$1.02M
$888.3K – $1.18M
NOI $71,063 @ 7.0% cap · market cap 3.74%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.22M
$1.06M – $1.42M
NOI $85,096 @ 7.0% cap · market cap 4.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Multi-tenant
Tenancy
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
7,671
Businesses Nearby
Explore this area
Business Placement
Demographics for 95816, CA
18,606
Population
11,553
Households
1.6
Avg Household Size
36
Median Age
65%
College-Educated
98%
High-School Grad
2.7 sq mi
ZIP Area
6,891
Density / Sq Mi
$90,521
Median Household Income
$61,407
Median Earnings
$1,647
Median Rent
$789,700
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 - Six remodeled studio apartments plus two newly built detached ADUs provide a mix of existing rentals and new construction.
Where is this apartment building located?
The property is located at 2423 L ST Sacramento, CA.
What is the asking price?
The asking price for this property is $1,900,000.
What are key features of this property?
This property features: Six studio apartments plus two newly constructed detached ADUs for 8 total rental units; Two detached ADUs include modern 2‑bedroom/1‑bath layouts with about 600 SF each; Four of the six studio units have been renovated
