7-Unit Single-Story Apartment
For Sale
$1,100,000
8181 Commercial Pl, South Gate, CA 90280
Single-story apartment property with uniform one-bedroom, one-bath units, on-site parking, and additional storage.
Property Size2,948 SF
Days on Market17
Property Features for 8181 Commercial Pl
General Information
Standard status
Active
Size
2,948 SF
Property subtype
MULTI_FAMILY
Building Details
Building Size
2,948 SF
Year Built
1923
Listing Agency:
Remax Commercial and Investment Realty
Listed By:
Nicholas Petrosian · License #01462598
(213) 817-1000
Source:
Milsteinestates
Added: Aug 21
Changed: Sep 4
Last Checked: Sep 5 at 6:45AM
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 7-unit apartment property at 8181 Commercial Pl in South Gate, California, was built in 1923 and is entirely single-story. The unit mix consists of seven one-bedroom, one-bath residences, creating a consistent layout across the property. Additional on-site storage is included.
The property occupies an approximately 8,998-square-foot lot and provides 10 parking spaces, with capacity for 11-12 vehicles. The asset is subject to AB 1482 and has no local rent control.
The property occupies an approximately 8,998-square-foot lot and provides 10 parking spaces, with capacity for 11-12 vehicles. The asset is subject to AB 1482 and has no local rent control.
Key Highlights
- 7‑unit apartment property built in 1923
- All units are one‑bedroom, one‑bath residences
- Entirely single‑story construction
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
$47,436
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
4.31%
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%
$948,720
$948.7K
Cap Rate 7%
$677,657
$677.7K
Cap Rate 9%
$527,067
$527.1K
Market Conditions
NOI Build-Up for 2,948 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
$93.7K $31.80/SF
− Vacancy
−$7.5K −$2.54/SF
EGI
$86.2K $29.26/SF
− OpEx
−$38.8K −$13.17/SF
NOI
$47.4K $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%
$948,720
Cap Rate 7%
$677,657
Cap Rate 9%
$527,067
Alternative Uses
Best Use
Apartment 5plus
$677.7K
$593.0K – $790.6K
NOI $47,436 @ 7.0% cap · market cap 4.31%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.58M
$1.38M – $1.84M
NOI $110,484 @ 7.0% cap · market cap 10.04%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,463
Businesses Nearby
Explore this area
Business Placement
Demographics for 90280, CA
92,678
Population
25,395
Households
3.6
Avg Household Size
34
Median Age
12%
College-Educated
59%
High-School Grad
7.4 sq mi
ZIP Area
12,524
Density / Sq Mi
$71,379
Median Household Income
$34,547
Median Earnings
$1,471
Median Rent
$608,500
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 - Single-story apartment property with uniform one-bedroom, one-bath units, on-site parking, and additional storage.
Where is this apartment building located?
The property is located at 8181 Commercial Pl South Gate, CA.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: 7‑unit apartment property built in 1923; All units are one‑bedroom, one‑bath residences; Entirely single‑story construction
