12-Unit Apartment Building with
For Sale
$6,100,000
525 N Francisca Ave, Redondo Beach, CA 90277
Twelve 2-bedroom units with 12 garages and an on-site laundry facility on a single lot.
Property Size12,192 SF
Lot Size0.26 Acres
Price / SF$500.33
Days on Market141
Property Features for 525 N Francisca Ave
General Information
Standard status
Active
Size
12,192 SF
Total Parking Spaces
12
Lot size
0.26 Acres
Property subtype
Residential Income
Additional Details
Cap Rate
4.35%
Multifamily Units
12
Amenities
on-site laundry facility
Building Details
Tenancy
Multi
Listing Agency:
Shield CRE, Inc.
(310) 593-9861
Listed By:
Gianluca Jacoli · License #01938297
(310) 593-9861
Source:
Exprealty
Added: Apr 6
Changed: Aug 23
Last Checked: Jul 29 at 2:53PM
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 Shield CRE, Inc.
Investment Insights
Based on property information with market context.
This 12-unit apartment building includes (12) two-bedroom, 1.75-bathroom units with spacious layouts. The offering also notes four renovated units delivered vacant, positioning the property to capture rental income immediately. The site includes 12 garages and an on-site laundry facility.
The property is located in South Redondo Beach, west of PCH, and is described as being just blocks from the Redondo Beach Pier, King Harbor, and the Pacific Ocean.
The asset is listed as approximately 11,364 SF on an 11,364 SF lot. The remarks state the property is not subject to Los Angeles rent control and instead falls under AB 1482, and that the lot presents an opportunity to add ADUs.
The property is located in South Redondo Beach, west of PCH, and is described as being just blocks from the Redondo Beach Pier, King Harbor, and the Pacific Ocean.
The asset is listed as approximately 11,364 SF on an 11,364 SF lot. The remarks state the property is not subject to Los Angeles rent control and instead falls under AB 1482, and that the lot presents an opportunity to add ADUs.
Key Highlights
- 12‑unit apartment building in South Redondo Beach, built in 1964
- All units are 2‑bedroom/1.75‑bath layouts; four renovated units delivered vacant
- Total size 11,364 SF on an 11,364 SF lot with 12 garages
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
$196,179
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
3.22%
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%
$3,923,580
$3.9M
Cap Rate 7%
$2,802,557
$2.8M
Cap Rate 9%
$2,179,767
$2.2M
Market Conditions
NOI Build-Up for 12,192 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
$387.7K $31.80/SF
− Vacancy
−$31.0K −$2.54/SF
EGI
$356.7K $29.26/SF
− OpEx
−$160.5K −$13.17/SF
NOI
$196.2K $16.09/SF
Area
Los Angeles County, CA
Vacancy
8.00%
Lease Rate
$31.80 /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%
$3,923,580
Cap Rate 7%
$2,802,557
Cap Rate 9%
$2,179,767
Alternative Uses
Best Use
Apartment 5plus
$2.80M
$2.45M – $3.27M
NOI $196,179 @ 7.0% cap · market cap 3.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$6.53M
$5.71M – $7.62M
NOI $456,928 @ 7.0% cap · market cap 7.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
12
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,858
Businesses Nearby
Explore this area
Business Placement
Demographics for 90277, CA
37,856
Population
18,229
Households
2.1
Avg Household Size
45
Median Age
70%
College-Educated
98%
High-School Grad
3.6 sq mi
ZIP Area
10,516
Density / Sq Mi
$131,985
Median Household Income
$87,191
Median Earnings
$2,621
Median Rent
$1,403,800
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 - Twelve 2-bedroom units with 12 garages and an on-site laundry facility on a single lot.
Where is this apartment building located?
The property is located at 525 N Francisca Ave Redondo Beach, CA.
What is the asking price?
The asking price for this property is $6,100,000.
What are key features of this property?
This property features: 12‑unit apartment building in South Redondo Beach, built in 1964; All units are 2‑bedroom/1.75‑bath layouts; four renovated units delivered vacant; Total size 11,364 SF on an 11,364 SF lot with 12 garages
