Long Beach 9-Unit Investment
For Sale
$1,650,000
Pending
617 West 3rd Street, Long Beach, CA 90802
9-unit property in vibrant Long Beach, CA. Fully rented.
Property Size7,190 SF
Days on Market175
Property Features for 617 West 3rd Street
General Information
Standard status
Pending
Size
7,190 SF
Property subtype
Mixed Use
Building Details
Building Size
7,190 SF
Year Built
1921
Stories
2
Listing Agency:
Century 21 Masters
Listed By:
Melinda Elmer · License #01399946
(562) 316-2915
Source:
Nolanrossre.kw
Added: Mar 27
Changed: Sep 13
Last Checked: Sep 16 at 1:04PM
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 Century 21 Masters
Investment Insights
Based on property information with market context.
This 9-unit property is located in Long Beach, CA, within the Downtown Long Beach corridor. The property is situated minutes from the waterfront, Pine Avenue, and major employment hubs. The location benefits from rental demand driven by lifestyle and location. Long Beach is experiencing sustained growth due to redevelopment, proximity to ports, and accessibility to Los Angeles and Orange County. The area attracts young professionals, students, and long-term residents seeking an urban coastal environment with walkability and transit access. The property includes two 4-unit apartment-style buildings and one Craftsman single-family residence with a detached 2-car garage situated between them. Several units have been recently upgraded, and utility improvements have been completed. The property is fully rented with long-term tenants and operates at approximately a 6.02% cap rate, offering stable in-place income with additional upside potential. The bike score is 61, making it bikeable, the walk score is 53, indicating it is somewhat walkable, and the transit score is 66, indicating good transit.
Key Highlights
- Prime location in Downtown Long Beach, near the waterfront, Pine Avenue, and major employment hubs.
- 9‑unit property consisting of two apartment buildings and a single‑family residence with a detached garage.
- Fully rented property operating at approximately a 6.02% cap rate, providing stable income.
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
$137,498
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
8.33%
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%
$2,749,960
$2.7M
Cap Rate 7%
$1,964,257
$2.0M
Cap Rate 9%
$1,527,756
$1.5M
Market Conditions
NOI Build-Up for 7,190 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
$263.2K $36.60/SF
− Vacancy
−$13.2K −$1.83/SF
EGI
$250.0K $34.77/SF
− OpEx
−$112.5K −$15.65/SF
NOI
$137.5K $19.12/SF
Area
Long Beach, CA
Vacancy
5.00%
Lease Rate
$36.60 /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%
$2,749,960
Cap Rate 7%
$1,964,257
Cap Rate 9%
$1,527,756
Alternative Uses
Best Use
Apartment 5plus
$1.96M
$1.72M – $2.29M
NOI $137,498 @ 7.0% cap · market cap 8.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.85M
$3.37M – $4.49M
NOI $269,465 @ 7.0% cap · market cap 16.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
4,673
Businesses Nearby
Explore this area
Business Placement
Demographics for 90802, CA
41,686
Population
25,055
Households
1.7
Avg Household Size
37
Median Age
44%
College-Educated
88%
High-School Grad
6.5 sq mi
ZIP Area
6,413
Density / Sq Mi
$72,152
Median Household Income
$52,011
Median Earnings
$1,855
Median Rent
$546,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Apartment building - 9-unit property in vibrant Long Beach, CA. Fully rented.
Where is this apartment building located?
The property is located at 617 West 3rd Street Long Beach, CA.
What is the asking price?
The asking price for this property is $1,650,000.
What are key features of this property?
This property features: Prime location in Downtown Long Beach, near the waterfront, Pine Avenue, and major employment hubs.; 9‑unit property consisting of two apartment buildings and a single‑family residence with a detached garage.; Fully rented property operating at approximately a 6.02% cap rate, providing stable income.
