7-Unit Multifamily Value-Add Opportunity in Long Beach with 7% Cap Rate
1720 Cerritos Ave, Long Beach, CA 90813Opportunity
As a Class C building constructed in 1963 with no recorded renovations, the asset presents significant value-add potential through cosmetic upgrades, amenity enhancements, and operational efficiencies. The zoning (LBR3S - Limited Density Multiple Residence) supports redevelopment or density increases, adding long-term optionality. Located in Long Beach’s 90813 ZIP code, the property benefits from high demand in a supply-constrained coastal market, with proximity to major employment hubs, transportation, and lifestyle amenities driving renter appeal.
Opportunity
The unit amenities—including air conditioning, dishwasher, washer/dryer hookups, ceiling fans, and hardwood floors—provide a competitive advantage for tenant retention and allow for rental rate increases post-renovation. On-site laundry facilities represent an additional income stream. By modernizing these features and addressing deferred maintenance, an investor can elevate the property to Class B- standards, capturing higher rents and reducing vacancy risk in a tight rental market.
Opportunity
With 7 units, this asset serves as an ideal entry point for investors looking to scale in the Southern California multifamily sector. The lot size (0.12 acres) offers potential for expansion or reconfiguration under current zoning. Risks include the property’s age (requiring capital reserves for systems updates) and exposure to California regulatory changes (e.g., rent control, zoning compliance). However, the strong NOI, high cap rate, and location fundamentals mitigate these risks, positioning the property for both near-term cash flow and long-term appreciation.
Strength
The property offers a compelling 7.00% cap rate, supported by a solid Net Operating Income (NOI) of $144,960. At a sale price of $2.1 million ($300,000 per unit and $345.74 per square foot), it provides an attractive entry point for investors seeking stable, high-yielding cash flow in a coastal California market. The NOI indicates efficient current operations, while the cap rate exceeds regional averages for Class C multifamily assets, suggesting undervalued potential or operational upside.
Strength
Long Beach is a thriving submarket within the Greater Los Angeles region, characterized by strong population growth, diverse economic drivers (including port, healthcare, and education sectors), and a desirable Southern California lifestyle. The property’s location offers inherent resilience to economic downturns due to consistent rental demand from both young professionals and service-sector workers. The parking ratio (0.98/1,000 SF) aligns with urban multifamily standards, catering to tenant needs and supporting competitive leasing.
Property Overview
- Multifamily Building located in Long Beach, CA
- Built in 1963
- Strong cap rate of 7.00%
- 6,074 SF of rentable area
Property Details
| Year Built | 1963 | Building Type | Multifamily |
| Total Size | 6,074 SF | Zoning | LBR3S - Limited Density Multiple Residence |
| Parking Spaces | N/A | Occupancy Rate | 0.0% |
| Cap Rate | 7.00% | Annual NOI | $144,960 |
| Price | $2,100,000 | Price/SF | $345.74 |
| Location | Long Beach, CA | County | Los Angeles |
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* Calculations are estimates only. Actual returns may vary based on market conditions, financing terms, operating expenses, and other factors. Consult with financial and legal professionals before making investment decisions.
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Total Return if Sold (Exit Strategy)
* Assumes property appreciation and no sale costs. Past performance doesn't guarantee future results.
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Things Near
Public Transportation
0.3 milesRestaurants & Dining
0.2 milesShopping Center
0.5 milesParks & Recreation
0.8 milesAbout Long Beach
Located in California, Long Beach is a dynamic area with strong commercial real estate fundamentals and excellent connectivity.
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