8-Unit Apartment Building with
New
For Sale
Contact for pricing
504 Clay Avenue, Huntington Beach, CA 92648
Fully permitted accessory dwelling unit complements renovated interiors and varied apartment layouts.
Property Size6,400 SF
Lot Size0.23 Acres
Price / SF$582.03
Days on Market7
Property Features for 504 Clay Avenue
General Information
Standard status
Active
Size
6,400 SF
Net Rentable
6,400 SF
Total Parking Spaces
9
Lot size
0.23 Acres
Property subtype
Multifamily
Occupancy
100%
Net Operating Income
$155,862
Site & Location
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Units
Unit Mix
3 x 1BR/1BA, 1 x 2BR/1.5BA, 4 x 2BR/2BA
Multifamily Units
8
Amenities
private patios or balconies
individual garages
solar panels
in-unit washer and dryer
private backyard
Building Details
Year Built
1984
Year Renovated
2023
Buildings
2
Units
8
Listing Agency:
Matthews
(949) 474-4004
Listed By:
Kyle Mirrafati · License #CA 01911204
Source:
Crexi
Added: Aug 6
Changed: Aug 10
Last Checked: Aug 11 at 7:15AM
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 Matthews
Investment Insights
Based on property information with market context.
This 8-unit apartment property includes seven original residences and a fully permitted ADU completed in 2023. The buildings total approximately 6,400 rentable square feet on a 10,001-square-foot lot, with a mix of three one-bedroom/one-bath units, one two-bedroom/one-and-one-half-bath unit, and four two-bedroom/two-bath units. The approximately 800-square-foot ADU includes solar panels, a private backyard, in-unit laundry, separately metered electricity, and an individual water heater.
Three apartments have been substantially renovated with quartz countertops, luxury vinyl plank flooring, and updated finishes. Other units feature granite countertops and laminate flooring. Recent improvements include exterior paint, perimeter fencing, and a central water heater serving the original seven units. Private patios or balconies, individual garages, and on-site parking serve the residences.
The property occupies an island parcel without adjacent residential buildings, just north of Yorktown Avenue and less than one mile from Downtown Huntington Beach, Main Street, Pacific Coast Highway, and the beach. A RUBS program is already in place.
Three apartments have been substantially renovated with quartz countertops, luxury vinyl plank flooring, and updated finishes. Other units feature granite countertops and laminate flooring. Recent improvements include exterior paint, perimeter fencing, and a central water heater serving the original seven units. Private patios or balconies, individual garages, and on-site parking serve the residences.
The property occupies an island parcel without adjacent residential buildings, just north of Yorktown Avenue and less than one mile from Downtown Huntington Beach, Main Street, Pacific Coast Highway, and the beach. A RUBS program is already in place.
Key Highlights
- 8 apartment units comprising seven original units plus a fully permitted ADU completed in 2023
- Approximately 6,400 rentable SF on a 10,001‑square‑foot lot
- Unit mix includes three 1‑bedroom, one 2‑bedroom/1.5‑bath, and four 2‑bedroom/2‑bath units
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
$137,966
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
3.70%
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%
$2,759,320
$2.8M
Cap Rate 7%
$1,970,943
$2.0M
Cap Rate 9%
$1,532,956
$1.5M
Market Conditions
NOI Build-Up for 6,400 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
$257.3K $40.20/SF
− Vacancy
−$6.4K −$1.01/SF
EGI
$250.8K $39.20/SF
− OpEx
−$112.9K −$17.64/SF
NOI
$138.0K $21.56/SF
Area
Huntington Beach, CA
Vacancy
2.50%
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%
$2,759,320
Cap Rate 7%
$1,970,943
Cap Rate 9%
$1,532,956
Alternative Uses
Best Use
Apartment 5plus
$1.97M
$1.72M – $2.30M
NOI $137,966 @ 7.0% cap · market cap 3.70%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$2.21M
$1.94M – $2.58M
NOI $154,829 @ 7.0% cap · market cap 4.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
8
Residential units
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,931
Businesses Nearby
Explore this area
Business Placement
Demographics for 92648, CA
46,691
Population
21,609
Households
2.2
Avg Household Size
44
Median Age
51%
College-Educated
95%
High-School Grad
8.0 sq mi
ZIP Area
5,836
Density / Sq Mi
$118,993
Median Household Income
$73,049
Median Earnings
$2,324
Median Rent
$1,176,000
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 - Fully permitted accessory dwelling unit complements renovated interiors and varied apartment layouts.
Where is this apartment building located?
The property is located at 504 Clay Avenue Huntington Beach, CA.
What is the asking price?
The asking price for this property is $3,725,000.
What are key features of this property?
This property features: 8 apartment units comprising seven original units plus a fully permitted ADU completed in 2023; Approximately 6,400 rentable SF on a 10,001‑square‑foot lot; Unit mix includes three 1‑bedroom, one 2‑bedroom/1.5‑bath, and four 2‑bedroom/2‑bath units
