2019-Built Eight-Unit
For Sale
$2,025,000
3944 South Budlong Avenue, Los Angeles, CA 90037
2019 construction eight-unit property with individually metered gas and electricity and tenant-paid water, trash, gas, and electricity.
Property Size5,445 SF
Lot Size0.32 Acres
Price / SF$371.90
Days on Market176
Property Features for 3944 South Budlong Avenue
General Information
Standard status
Active
Size
5,445 SF
Total Parking Spaces
8
Lot size
0.32 Acres
Property subtype
Residential Income
Zoning
LARD1.5
Net Operating Income
$276,309
Additional Details
Opportunity Zone
Yes
Highway Access
Yes
Multifamily Units
8
Amenities
Two
Central
Washer Included
Laminate
Dishwasher, Garbage Disposal, Microwave, Refrigerator, Electric Dryer Hookup, Washer
No
Building Details
Year Built
2019
Buildings
2
Stories
2
Units
4
Listing Agency:
Compass
(310) 779-9929
Listed By:
John Swartz · License #01873487
(310) 779-9929
Source:
Compass
Added: Mar 1
Changed: Aug 23
Last Checked: Aug 24 at 12:13PM
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 Compass
Investment Insights
Based on property information with market context.
3944 S Budlong Ave is an eight-unit multifamily property constructed in 2019. The building contains eight three-bedroom, three-bathroom apartment units designed with spacious layouts. Each unit is individually metered for gas and electricity, and includes a tankless water heater. Ownership benefits from limited utility obligations, with tenants responsible for water, trash, gas, and electricity. The property is subject to the Los Angeles Rent Stabilization Ordinance (LARSO). The rentable building area is approximately 10,887 square feet, and the property is situated on two parcels totaling approximately 13,776 square feet.
The property is located in Los Angeles’ Exposition Park neighborhood. It is zoned RD1.5-1-CPIO and is situated within a federally designated Qualified Opportunity Zone (QOZ). The seller notes the QOZ designation may provide eligible investors with tax advantages and long-term operational flexibility. The area is described as supply-constrained with demand supported by nearby academic, cultural, and employment anchors, including the University of Southern California (USC), the California Science Center, the museums of Exposition Park, and BMO Stadium. The OM also references convenient access to Downtown Los Angeles and major transportation corridors, including the I-110 and I-10 freeways and the Metro E Line.
This is a straightforward eight-unit ownership opportunity for investors or operators seeking a newer-construction multifamily asset with individually metered utilities and tenant-paid operating expenses. With the property’s LARSO requirement and QOZ status noted, interested parties should review applicable regulatory and program details for compatibility with their operating strategy.
The property is located in Los Angeles’ Exposition Park neighborhood. It is zoned RD1.5-1-CPIO and is situated within a federally designated Qualified Opportunity Zone (QOZ). The seller notes the QOZ designation may provide eligible investors with tax advantages and long-term operational flexibility. The area is described as supply-constrained with demand supported by nearby academic, cultural, and employment anchors, including the University of Southern California (USC), the California Science Center, the museums of Exposition Park, and BMO Stadium. The OM also references convenient access to Downtown Los Angeles and major transportation corridors, including the I-110 and I-10 freeways and the Metro E Line.
This is a straightforward eight-unit ownership opportunity for investors or operators seeking a newer-construction multifamily asset with individually metered utilities and tenant-paid operating expenses. With the property’s LARSO requirement and QOZ status noted, interested parties should review applicable regulatory and program details for compatibility with their operating strategy.
Key Highlights
- 8‑unit multifamily built in 2019 in the Exposition Park neighborhood of Los Angeles
- Approximately 10,887 SF rentable building area on two parcels totaling 13,776 SF, zoned RD1.5‑1‑CPIO
- All units are 3‑bedroom, 3‑bath and separately metered for gas and electricity
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
$80,857
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
3.99%
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%
$1,617,140
$1.6M
Cap Rate 7%
$1,155,100
$1.2M
Cap Rate 9%
$898,411
$898.4K
Market Conditions
NOI Build-Up for 5,445 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
$148.0K $27.19/SF
− Vacancy
−$1.0K −$0.19/SF
EGI
$147.0K $27.00/SF
− OpEx
−$66.2K −$12.15/SF
NOI
$80.9K $14.85/SF
Area
ZIP 90037
Vacancy
0.70%
Lease Rate
$27.19 /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%
$1,617,140
Cap Rate 7%
$1,155,100
Cap Rate 9%
$898,411
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.01M – $1.35M
NOI $80,857 @ 7.0% cap · market cap 3.99%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.13M
$1.87M – $2.49M
NOI $149,348 @ 7.0% cap · market cap 7.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,192
Businesses Nearby
Explore this area
Business Placement
Demographics for 90037, CA
63,706
Population
18,709
Households
3.4
Avg Household Size
33
Median Age
9%
College-Educated
54%
High-School Grad
2.9 sq mi
ZIP Area
21,968
Density / Sq Mi
$56,417
Median Household Income
$29,857
Median Earnings
$1,438
Median Rent
$632,600
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 - 2019 construction eight-unit property with individually metered gas and electricity and tenant-paid water, trash, gas, and electricity.
Where is this apartment building located?
The property is located at 3944 South Budlong Avenue Los Angeles, CA.
What is the asking price?
The asking price for this property is $2,025,000.
What are key features of this property?
This property features: 8‑unit multifamily built in 2019 in the Exposition Park neighborhood of Los Angeles; Approximately 10,887 SF rentable building area on two parcels totaling 13,776 SF, zoned RD1.5‑1‑CPIO; All units are 3‑bedroom, 3‑bath and separately metered for gas and electricity
