907-927 Grand Avenue

907 Grand Avenue, Long Beach, CA 90804

Sale Price

$4,375,000

Investment Overview

Units

13

Year Built

1962

Price Per SF

$5

Price Per Unit

$336,538

Current Cap Rate

4.25%

Market Cap Rate

5.08%

Current GRM

15.05

Market GRM

13.32

The Offering

907-927 Grand Avenue is a 13-unit investment asset located in the popular Eastside Long Beach rental market. Situated on two parcels, the property is comprised of three separate structures featuring a favorable mix of seven 2BD / 1BA and six 1BD / 1BA units.

EXTENSIVE RENOVATIONS

The property has been extensively renovated. Unit interior renovations totaling over $340,000 include:

  • New vinyl plank flooring & custom bathroom tile
  • Modern designer cabinets & countertops
  • New appliances
  • New energy-efficient LED lighting
  • New upgraded electrial subpanels in-unit

POTENTIAL TO BUILD 2 ADUs

The property offers onsite laundry facilities and eight garages.  Four of the garages are in a stand-alone structure and have the capacity to be converted to two ADUs of approximately 350 square feet each.  The addition of these two ADUs has the potential to add $1,500 rental income per unit per month, for a total combined income of $36,000 annually.

PRIME EASTSIDE LOCATION

Located in prime Eastside Long Beach, which has a Walk Score of 91, the property provides tenants with convenient, walkable access to all amenities for day-to-day living. The neighborhood is ranked as one of the best neighborhoods in Long Beach for young professionals by Niche.com. The median household income is $118,600 and 31% of residents are families with children.

The seller’s renovations and management provide a new buyer with a solid investment at 4.25% cap rate on actuals.

Investment Highlights

  • 4.25% Cap Rate on Actuals
  • Potential to Build 2 ADUs with 25% Return
  • Extensive Interior Renovations Exceeding $340K
  • Significant Electrical and Plumbing System Upgrades
  • Strong Unit Mix of (7) 2BD / 1BA and (6) 1BD / 1BA
  • Desirable Eastside Long Beach Location