Building Details

Building Size 4,335 SF

Year Built 1949

Buildings 2

Stories 1

Listing Agency: Coldwell Banker Diamond j**@janfiore.com Show Phone

Listed By: Jan Fiore · License #01262942

Source: Velocityrealtysd

Added: May 12 Changed: Aug 22 Last Checked: Aug 24 at 12:56PM

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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 Coldwell Banker Diamond

Investment Insights

Based on property information with market context.

This duplex property includes two detached, single-level residences on a private parcel. The primary home provides approximately 3,308 square feet with three bedrooms, an office, two baths, wide-plank white oak flooring, cedar ceilings with exposed beams, and a chef’s kitchen featuring Thermador appliances and Caesarstone countertops. The second residence contains approximately 1,025 square feet, a spacious bedroom, full bath, full kitchen, and an outdoor deck.

The property is zoned as a duplex and has access from both Dorothea and Walnut. Its elevated setting includes 300-degree views extending across Orange County, Los Angeles, and Catalina Island. Grounds include private hiking paths, fruit trees, mature landscaping, and additional unused land. Other improvements include custom iron entry doors, dual-zone AC, motorized shades, and a backup generator. The property was built in 1949.

Key Highlights

• Two detached, single‑level residences totaling approximately 3,308 SF and 1,025 SF
• Duplex zoning with access from both Dorothea and Walnut
• Primary residence includes 3 bedrooms, an office, and 2 baths

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

$91,438

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

3.82%

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%

$1,828,760 $1.8M

Cap Rate 7%

$1,306,257 $1.3M

Cap Rate 9%

$1,015,978 $1.0M

Market Conditions

NOI Build-Up for 4,335 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

$135.3K $31.20/SF

− Vacancy

−$4.6K −$1.07/SF

EGI

$130.6K $30.13/SF

− OpEx

−$39.2K −$9.04/SF

NOI

$91.4K $21.09/SF

Area

Orange County, CA

Vacancy

3.42%

Lease Rate

$31.20 /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%

$1,828,760

Cap Rate 7%

$1,306,257

Cap Rate 9%

$1,015,978

Alternative Uses

Best Use

Multifamily LT 5

$1.31M

$1.14M – $1.52M (±1% cap)

NOI $91,438 @ 7.0% cap · market cap 3.82%

Second Best

Apartment 5plus

$1.18M

$1.03M – $1.38M (±1% cap)

NOI $82,743 @ 7.0% cap · market cap 3.45%

Theoretical Best

Office A

$1.46M

$1.27M – $1.70M (±1% cap)

NOI $101,923 @ 7.0% cap · market cap 4.26%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Duplexes

Suggested Use

Top Pick Law Firm Real Estate Agency Parking Lot & Garage Auto Parts Store Furniture & Home Goods Kitchen & Bath Showroom

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

2

Residential units

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

77

Businesses Nearby

Explore this area Business Placement

Demographics for 90631, CA

69,533

Population

23,390

Households

3

Avg Household Size

38

Median Age

32%

College-Educated

86%

High-School Grad

14.0 sq mi

ZIP Area

4,967

Density / Sq Mi

$102,208

Median Household Income

$46,334

Median Earnings

$2,029

Median Rent

$757,900

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this duplexes located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Duplex - Two single-level residences occupy a private, dual-access parcel with custom finishes, separate kitchens, and expansive regional views.

Where is this duplex located?

The property is located at 506 Dorothea La Habra Heights, CA.

What is the asking price?

The asking price for this property is $2,395,000.

What are key features of this property?

This property features: Two detached, single‑level residences totaling approximately 3,308 SF and 1,025 SF; Duplex zoning with access from both Dorothea and Walnut; Primary residence includes 3 bedrooms, an office, and 2 baths