20-Unit Apartment
New
For Sale
$6,025,000
927 3rd St, Santa Monica, CA 90403
Two adjoining buildings offer varied apartment layouts in a walkable Santa Monica setting.
Property Size15,582 SF
Lot Size0.34 Acres
Days on Market7
Property Features for 927 3rd St
General Information
Standard status
Active
Size
15,582 SF
Net Rentable
15,582 SF
Lot size
0.34 Acres
Property subtype
MULTI_FAMILY
Units
Unit Mix
6 x 2BR, 10 x 1BR, 4 x Studio
Multifamily Units
20
Additional Details
Cap Rate
4.68%
Building Details
Building Size
15,582 SF
Year Built
1956
Buildings
2
Listing Agency:
Miller & Desatnik Realty Co.
Listed By:
David Miller · License #02105346
(310) 939-9300
Source:
Evecap
Added: Sep 25
Changed: Sep 30
Last Checked: Sep 30 at 1:49PM
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 Miller & Desatnik Realty Co.
Investment Insights
Based on property information with market context.
Two apartment buildings, constructed in 1956, are operated together across neighboring parcels. Their 20 units comprise six two-bedroom apartments, ten one-bedroom apartments, and four studios. The buildings contain 15,582 net rentable square feet on a combined 14,999-square-foot lot.
The property is in Santa Monica’s Wilshire Montana district, three blocks from the beach and within walking distance of Montana Avenue and the Third Street Promenade. Current in-place rents are 40.3% below projected market rents, with unit turnover projected to support 64.3% net operating income growth. The stated cap rates are 4.68% on current income and 7.69% at stabilized market income.
The property is in Santa Monica’s Wilshire Montana district, three blocks from the beach and within walking distance of Montana Avenue and the Third Street Promenade. Current in-place rents are 40.3% below projected market rents, with unit turnover projected to support 64.3% net operating income growth. The stated cap rates are 4.68% on current income and 7.69% at stabilized market income.
Key Highlights
- 20 apartments across two adjacent parcels
- Unit mix: six two‑bedroom units, ten one‑bedroom units, and four studios
- 15,582 net rentable square feet on a combined 14,999‑square‑foot lot
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
$250,727
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
4.16%
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%
$5,014,540
$5.0M
Cap Rate 7%
$3,581,814
$3.6M
Cap Rate 9%
$2,785,856
$2.8M
Market Conditions
NOI Build-Up for 15,582 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
$495.5K $31.80/SF
− Vacancy
−$39.6K −$2.54/SF
EGI
$455.9K $29.26/SF
− OpEx
−$205.1K −$13.17/SF
NOI
$250.7K $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%
$5,014,540
Cap Rate 7%
$3,581,814
Cap Rate 9%
$2,785,856
Alternative Uses
Best Use
Apartment 5plus
$3.58M
$3.13M – $4.18M
NOI $250,727 @ 7.0% cap · market cap 4.16%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.34M
$7.30M – $9.73M
NOI $583,978 @ 7.0% cap · market cap 9.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
20
Residential units
Location Intelligence
Trade Area within ½ mile
6,721
Businesses Nearby
Explore this area
Business Placement
Demographics for 90403, CA
25,278
Population
14,853
Households
1.7
Avg Household Size
42
Median Age
72%
College-Educated
96%
High-School Grad
1.4 sq mi
ZIP Area
18,056
Density / Sq Mi
$121,512
Median Household Income
$82,557
Median Earnings
$2,443
Median Rent
$1,553,500
Median Home Value
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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 - Two adjoining buildings offer varied apartment layouts in a walkable Santa Monica setting.
Where is this apartment building located?
The property is located at 927 3rd St Santa Monica, CA.
What is the asking price?
The asking price for this property is $6,025,000.
What are key features of this property?
This property features: 20 apartments across two adjacent parcels; Unit mix: six two‑bedroom units, ten one‑bedroom units, and four studios; 15,582 net rentable square feet on a combined 14,999‑square‑foot lot
