4-Unit Apartment
New
For Sale
$2,225,000
2904 Peppertree Ln, Costa Mesa, CA 92626
Each residence has two bedrooms and one bathroom, with living, dining, and kitchen areas.
Property Size3,550 SF
Days on Market3
Property Features for 2904 Peppertree Ln
General Information
Standard status
Active
Size
3,550 SF
Property subtype
Investment
Units
Unit Mix
4 x 2BR/1BA
Multifamily Units
4
Building Details
Building Size
3,550 SF
Year Built
1960
Buildings
1
Stories
2
Units
4
Listed By:
Sally Roldan
Source:
Elliman
Added: Sep 28
Changed: Sep 29
Last Checked: Sep 30 at 12:48PM
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 Sally Roldan
Investment Insights
Based on property information with market context.
At 2904 Peppertree Ln in Costa Mesa, this four-unit residential property has a consistent two-bedroom, one-bathroom layout in each residence. Living rooms connect to dining areas and kitchens. Finishes and included features differ by unit; some have dishwashers and washer/dryer hookups, and one is furnished. Flooring includes carpet, with laminate in two downstairs units. Several interiors have been upgraded, and some were painted within the past year.
The roof is approximately 10 years old. Dual-pane windows were installed approximately 1 year ago, and the building exteriors were painted about 1 year ago. A rear-area renovation approximately 5 years ago added cement driveways and parking. Newer roll-up garage doors are also present. Street parking is available along the single-loaded street.
The property is near shopping, dining, and transportation. Its Walk Score is 72, Bike Score is 90, and Transit Score is 45. An adjacent four-unit property at 2902 Peppertree is also offered for purchase under a separate listing.
The roof is approximately 10 years old. Dual-pane windows were installed approximately 1 year ago, and the building exteriors were painted about 1 year ago. A rear-area renovation approximately 5 years ago added cement driveways and parking. Newer roll-up garage doors are also present. Street parking is available along the single-loaded street.
The property is near shopping, dining, and transportation. Its Walk Score is 72, Bike Score is 90, and Transit Score is 45. An adjacent four-unit property at 2902 Peppertree is also offered for purchase under a separate listing.
Key Highlights
- Four units, each with 2 bedrooms and 1 bathroom
- Dual‑pane windows installed approximately 1 year ago
- Building exteriors painted about 1 year ago
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
$81,163
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
3.65%
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%
$1,623,260
$1.6M
Cap Rate 7%
$1,159,471
$1.2M
Cap Rate 9%
$901,811
$901.8K
Market Conditions
NOI Build-Up for 3,550 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
$121.4K $34.20/SF
− Vacancy
−$5.5K −$1.54/SF
EGI
$115.9K $32.66/SF
− OpEx
−$34.8K −$9.80/SF
NOI
$81.2K $22.86/SF
Area
Costa Mesa, CA
Vacancy
4.50%
Lease Rate
$34.20 /SF/Yr
Expense Ratio
30.00%
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%
$1,623,260
Cap Rate 7%
$1,159,471
Cap Rate 9%
$901,811
Alternative Uses
Best Use
Multifamily LT 5
$1.16M
$1.01M – $1.35M
NOI $81,163 @ 7.0% cap · market cap 3.65%
Second Best
Apartment 5plus
$1.08M
$941.9K – $1.26M
NOI $75,351 @ 7.0% cap · market cap 3.39%
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $84,164 @ 7.0% cap · market cap 3.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
4
Residential units
Location Intelligence
Trade Area within ½ mile
1,613
Businesses Nearby
Explore this area
Business Placement
Demographics for 92626, CA
50,885
Population
20,643
Households
2.5
Avg Household Size
37
Median Age
46%
College-Educated
91%
High-School Grad
9.7 sq mi
ZIP Area
5,246
Density / Sq Mi
$117,627
Median Household Income
$55,920
Median Earnings
$2,520
Median Rent
$1,037,700
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?
Quadplex - Each residence has two bedrooms and one bathroom, with living, dining, and kitchen areas.
Where is this quadplex located?
The property is located at 2904 Peppertree Ln Costa Mesa, CA.
What is the asking price?
The asking price for this property is $2,225,000.
What are key features of this property?
This property features: Four units, each with 2 bedrooms and 1 bathroom; Dual‑pane windows installed approximately 1 year ago; Building exteriors painted about 1 year ago
