Six-Unit Renovated Apartment
For Sale
$1,190,000
517 W 42nd, Los Angeles, CA 90037
Updated multifamily property with varied unit layouts across two separate buildings near USC and Exposition Park.
Property Size2,984 SF
Days on Market26
Property Features for 517 W 42nd
General Information
Standard status
Active
Size
2,984 SF
Property subtype
Apartment
Financials
Cap Rate
5.77%
Gross Income
$113,618
Gross Rent Multiplier
10.5
Units
Unit Mix
4 x 1BR/1BA, 2 x studio
Multifamily Units
6
Building Details
Building Size
2,984 SF
Year Built
1924
Year Renovated
2020
Buildings
2
Listing Agency:
Keller Williams Coastal Prop.
(562) 843-1017
Listed By:
Alexandro Colombo · License #01927702
Source:
Rochellemaize
Added: Aug 4
Changed: Aug 28
Last Checked: Aug 28 at 3:34PM
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 Keller Williams Coastal Prop.
Investment Insights
Based on property information with market context.
This six-unit apartment property includes four one-bedroom, one-bath residences and two studio units arranged across two buildings. The rear structure contains two larger townhouse-style one-bedroom residences, providing a mix of layouts within the asset. Renovations completed in 2020 included kitchens, bathrooms, flooring, interior finishes, and exterior improvements. The property was originally built in 1924.
The asset is positioned just south of USC and Exposition Park. One renovated one-bedroom unit is currently available for lease, while the existing rent roll indicates approximately 6.2% additional rent upside. Current performance reflects a 5.77% cap rate and a 10.50 GRM.
The asset is positioned just south of USC and Exposition Park. One renovated one-bedroom unit is currently available for lease, while the existing rent roll indicates approximately 6.2% additional rent upside. Current performance reflects a 5.77% cap rate and a 10.50 GRM.
Key Highlights
- Six‑unit property with four 1BR/1BA units and two studios
- Two separate buildings, including two larger townhouse‑style one‑bedroom units
- Renovated in 2020 with updated kitchens, bathrooms, flooring, interiors, and exterior improvements
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
$44,312
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
3.72%
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%
$886,240
$886.2K
Cap Rate 7%
$633,029
$633.0K
Cap Rate 9%
$492,356
$492.4K
Market Conditions
NOI Build-Up for 2,984 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
$81.1K $27.19/SF
− Vacancy
−$568 −$0.19/SF
EGI
$80.6K $27.00/SF
− OpEx
−$36.3K −$12.15/SF
NOI
$44.3K $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%
$886,240
Cap Rate 7%
$633,029
Cap Rate 9%
$492,356
Alternative Uses
Best Use
Apartment 5plus
$633.0K
$553.9K – $738.5K
NOI $44,312 @ 7.0% cap · market cap 3.72%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.17M
$1.02M – $1.36M
NOI $81,847 @ 7.0% cap · market cap 6.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
6
Residential units
Location Intelligence
Trade Area within ½ mile
1,892
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 - Updated multifamily property with varied unit layouts across two separate buildings near USC and Exposition Park.
Where is this apartment building located?
The property is located at 517 W 42nd Los Angeles, CA.
What is the asking price?
The asking price for this property is $1,190,000.
What are key features of this property?
This property features: Six‑unit property with four 1BR/1BA units and two studios; Two separate buildings, including two larger townhouse‑style one‑bedroom units; Renovated in 2020 with updated kitchens, bathrooms, flooring, interiors, and exterior improvements
