Eight-Unit Mixed-Use
For Sale
$2,025,000
Pending
406 E 7th, Long Beach, CA 90813
Three detached buildings combine five residences with three commercial units in a walkable downtown Long Beach setting.
Property Size7,505 SF
Days on Market200
Property Features for 406 E 7th
General Information
Standard status
Pending
Size
7,505 SF
Property subtype
Mixed Use
Zoning
LBPD-30
Financials
Gross Income
$201,576
Gross Rent Multiplier
10.05
Site & Location
Corner Location
Yes
Road Access
Yes
Public Transit
Yes
Additional Details
Multifamily Units
5
Building Details
Building Size
7,505 SF
Year Built
1908
Buildings
3
Stories
2
Tenancy
Multi
Listing Agency:
Sage Real Estate Group, Inc.
(562) 307-0838
Listed By:
Juan Huizar · License #01417642
(562) 307-0838
Source:
Nolanrossre.kw
Added: Feb 11
Changed: Aug 28
Last Checked: Aug 29 at 5:49AM
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 Sage Real Estate Group, Inc.
Investment Insights
Based on property information with market context.
This mixed-use property includes eight units across three detached structures. The residential component comprises a two-bedroom, one-bath bungalow, two apartments positioned above retail space, and a two-story duplex with one residence on each level. Three ground-floor commercial units are located within the mixed-use building, creating a combination of residential and retail occupancy across the site. The property was built in 1908.
The buildings span 406–420 E 7th Street and 652–654 Elm Avenue in Long Beach, at the corner of 7th Street and Lime Avenue. The site provides 150 feet of frontage along E 7th Street, with 50 feet of depth along both Linden and Elm Avenues. It is zoned LBPD-30 within the Downtown Planned Development Zone and sits on the border of the East Village Arts District, near downtown restaurants, retail, nightlife, cultural attractions, public transportation, and major employment centers. The reported GRM is 10.05.
The buildings span 406–420 E 7th Street and 652–654 Elm Avenue in Long Beach, at the corner of 7th Street and Lime Avenue. The site provides 150 feet of frontage along E 7th Street, with 50 feet of depth along both Linden and Elm Avenues. It is zoned LBPD-30 within the Downtown Planned Development Zone and sits on the border of the East Village Arts District, near downtown restaurants, retail, nightlife, cultural attractions, public transportation, and major employment centers. The reported GRM is 10.05.
Key Highlights
- Eight units across three detached buildings: five residential and three commercial
- Unit mix includes a 2‑bedroom, 1‑bathroom bungalow, two apartments, three retail units, and a residential duplex
- 150 feet of frontage along E 7th Street
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
$172,501
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
8.52%
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%
$3,450,020
$3.5M
Cap Rate 7%
$2,464,300
$2.5M
Cap Rate 9%
$1,916,678
$1.9M
Market Conditions
NOI Build-Up for 7,505 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
$256.7K $34.20/SF
− Vacancy
−$10.2K −$1.36/SF
EGI
$246.4K $32.84/SF
− OpEx
−$73.9K −$9.85/SF
NOI
$172.5K $22.98/SF
Area
ZIP 90813
Vacancy
3.99%
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%
$3,450,020
Cap Rate 7%
$2,464,300
Cap Rate 9%
$1,916,678
Alternative Uses
Best Use
Multifamily LT 5
$2.46M
$2.16M – $2.88M
NOI $172,501 @ 7.0% cap · market cap 8.52%
Second Best
Apartment 5plus
$2.27M
$1.99M – $2.65M
NOI $158,966 @ 7.0% cap · market cap 7.85%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
5,153
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?
Mixed-use property - Three detached buildings combine five residences with three commercial units in a walkable downtown Long Beach setting.
Where is this mixed-use property located?
The property is located at 406 E 7th Long Beach, 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: Eight units across three detached buildings: five residential and three commercial; Unit mix includes a 2‑bedroom, 1‑bathroom bungalow, two apartments, three retail units, and a residential duplex; 150 feet of frontage along E 7th Street
