Renovated Apartment
For Sale
$1,175,000
Pending
8973 Alexander Ave, South Gate, CA 90280
Detached residence and four rear units create a diversified multifamily configuration with separate outdoor space.
Property Size2,564 SF
Days on Market63
Property Features for 8973 Alexander Ave
General Information
Standard status
Pending
Size
2,564 SF
Property subtype
Residential Income
Units
Unit Mix
1 x 2BR/1BA, 4 x 1BR/1BA
Multifamily Units
5
Listing Agency:
Remax Commercial and Investment Realty
(213) 233-4363
Listed By:
Enrique Viramontes · License #01372010
(213) 233-4363
Source:
Exprealty
Added: Jun 12
Changed: Aug 11
Last Checked: Aug 13 at 10:55AM
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.
Located at 8973 Alexander Ave in South Gate, California, this renovated multifamily property contains five units. The configuration includes a detached 2-bedroom, 1-bath single-family residence with a private front lawn, plus four 1-bedroom, 1-bath units positioned at the rear of the lot.
Capital improvements include a new sewer line, walkway and deck, electrical panels, wiring and subpanels, plumbing, heaters, roof, exterior paint, and windows. Existing onsite garages may provide potential for ADU conversion, subject to applicable approvals and requirements.
Capital improvements include a new sewer line, walkway and deck, electrical panels, wiring and subpanels, plumbing, heaters, roof, exterior paint, and windows. Existing onsite garages may provide potential for ADU conversion, subject to applicable approvals and requirements.
Key Highlights
- Five‑unit multifamily property in South Gate, CA
- Detached 2‑bedroom, 1‑bath residence with private front lawn
- Four rear units, each with 1 bedroom and 1 bath
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
$41,257
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
3.51%
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%
$825,140
$825.1K
Cap Rate 7%
$589,386
$589.4K
Cap Rate 9%
$458,411
$458.4K
Market Conditions
NOI Build-Up for 2,564 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
$81.5K $31.80/SF
− Vacancy
−$6.5K −$2.54/SF
EGI
$75.0K $29.26/SF
− OpEx
−$33.8K −$13.17/SF
NOI
$41.3K $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%
$825,140
Cap Rate 7%
$589,386
Cap Rate 9%
$458,411
Alternative Uses
Best Use
Apartment 5plus
$589.4K
$515.7K – $687.6K
NOI $41,257 @ 7.0% cap · market cap 3.51%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.37M
$1.20M – $1.60M
NOI $96,093 @ 7.0% cap · market cap 8.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
888
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 - Detached residence and four rear units create a diversified multifamily configuration with separate outdoor space.
Where is this apartment building located?
The property is located at 8973 Alexander Ave South Gate, CA.
What is the asking price?
The asking price for this property is $1,175,000.
What are key features of this property?
This property features: Five‑unit multifamily property in South Gate, CA; Detached 2‑bedroom, 1‑bath residence with private front lawn; Four rear units, each with 1 bedroom and 1 bath
