City of Commerce Apartment
For Sale
$2,700,000
Pending
5913 Greenwood Avenue, Commerce, CA 90040
12-unit apartment building in the City of Commerce.
Property Size10,767 SF
Days on Market134
Property Features for 5913 Greenwood Avenue
General Information
Standard status
Pending
Size
10,767 SF
Total Parking Spaces
12
Property subtype
Residential Income
Zoning
CMR3*
Net Operating Income
$175,708
Amenities
One
Wall Unit(s)
Other
Room
Lease
No
Building Details
Year Built
1965
Buildings
1
Stories
2
Units
12
Listing Agency:
Remax Commercial and Investment Realty
(626) 657-8150
Listed By:
Shant Sherbetdjian · License #01713570
(626) 657-8150
Source:
Compass
Added: Apr 13
Changed: Aug 23
Last Checked: Aug 3 at 11:22AM
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 Remax Commercial and Investment Realty
Investment Insights
Based on property information with market context.
This property features an apartment building containing 12 units located in the City of Commerce. The building has a total size of 10767 square feet. It can be classified as multifamily property and residential income property.
Key Highlights
- 12 Units offer a solid investment base.
- City of Commerce Location, a desirable area.
- Multifamily Investment Opportunity with great potential.
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
$173,250
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
6.42%
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%
$3,465,000
$3.5M
Cap Rate 7%
$2,475,000
$2.5M
Cap Rate 9%
$1,925,000
$1.9M
Market Conditions
NOI Build-Up for 10,767 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
$342.4K $31.80/SF
− Vacancy
−$27.4K −$2.54/SF
EGI
$315.0K $29.26/SF
− OpEx
−$141.7K −$13.17/SF
NOI
$173.2K $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%
$3,465,000
Cap Rate 7%
$2,475,000
Cap Rate 9%
$1,925,000
Alternative Uses
Best Use
Apartment 5plus
$2.47M
$2.17M – $2.89M
NOI $173,250 @ 7.0% cap · market cap 6.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.76M
$5.04M – $6.73M
NOI $403,523 @ 7.0% cap · market cap 14.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
814
Businesses Nearby
Explore this area
Business Placement
Demographics for 90040, CA
12,089
Population
3,376
Households
3.6
Avg Household Size
36
Median Age
12%
College-Educated
65%
High-School Grad
5.6 sq mi
ZIP Area
2,159
Density / Sq Mi
$70,909
Median Household Income
$37,924
Median Earnings
$1,390
Median Rent
$576,900
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Apartment building - 12-unit apartment building in the City of Commerce.
Where is this apartment building located?
The property is located at 5913 Greenwood Avenue Commerce, CA.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 12 Units offer a solid investment base.; City of Commerce Location, a desirable area.; Multifamily Investment Opportunity with great potential.
