123 Orange Grove Ave, San Fernando, CA 91340 | Multifamily Income Property
123 Orange Grove Ave, San Fernando, CA 91340
Opportunity
Value-Add Potential for Enhanced Returns: Built in 1986 with no recorded renovations, this Class C building presents clear value-add opportunities. Strategic upgrades—such as modernizing unit interiors, improving common areas, or adding energy-efficient features—could increase rental income and property value. The zoning (SFR3* - Industrial General) allows for potential mixed-use redevelopment, offering long-term upside beyond typical multifamily operations.
Risk
Balanced Risk Profile with Mitigatable Challenges: As a Class C property in an area zoned for industrial use, investors should consider potential risks, such as higher tenant turnover or nearby industrial activity impacting desirability. However, these are mitigated by the strong cash flow, affordable price point, and zoning versatility. A phased value-add strategy—focusing on cosmetic upgrades and operational efficiencies—can reduce vacancy risks and position the asset for appreciation as San Fernando’s market matures.
Strength
Attractive Cash Flow with Solid Cap Rate: The property generates a Net Operating Income (NOI) of $98,945, resulting in a calculated cap rate of 7.76%. This exceeds the average for Class C multifamily properties in the Greater Los Angeles area (typically 5–7%), indicating strong current income relative to the purchase price. The price per square foot of $117.10 and price per unit of $255,000 are below regional benchmarks, suggesting undervaluation. With individually metered utilities, operational costs are controlled, enhancing cash flow stability.
Strength
Strategic Location in a Growth Market: Situated in San Fernando, CA, the property benefits from proximity to key transportation routes (e.g., I-5 and SR-118) and urban development initiatives in the Greater Los Angeles region. San Fernando is experiencing increased demand for affordable housing, driven by population growth and limited new supply. The industrial-general zoning provides flexibility for future adaptive reuse, aligning with market trends toward live-work-play environments.
Strength
Manageable Scale with Functional Attributes: With 5 units on a 0.19-acre lot, this low-rise building offers a manageable entry point for investors while minimizing operational complexity. The parking ratio of 3/1,000 SF meets local standards, and individually metered utilities promote tenant accountability—a competitive advantage in cost-sensitive Class C segments.
San Fernando, CA Multifamily Property Overview
- Multifamily Building located in San Fernando, CA
- Built in 1986
- Strong cap rate of 7.76%
- 10,888 SF of rentable area
Property Details
| Year Built | 1986 | Building Type | Multifamily |
| Total Size | 10,888 SF | Zoning | SFR3* - Industrial General |
| Parking Spaces | N/A | Property Tax Rate | 1.37% |
| Cap Rate | 7.76% | Annual NOI | $98,945 |
| Price | $1,275,000 | Price/SF | $117.10 |
| Location | San Fernando, CA | County | Los Angeles |
Compare direct ownership against passive CRE platform exposure.
The calculator below frames the capital, risk, and operating burden of acquiring a property directly. REI Capital provides a professionally managed alternative with institutional underwriting and a 9% target annual growth projection.
Model your investment returns and cash flow projections
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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.
Direct ownership vs. passive CRE platform exposure
Compare the same starting capital across two allocation paths: direct property ownership with operational responsibility, debt exposure, and single-asset concentration, versus a professionally managed REI Capital platform strategy built around institutional underwriting and a 9% target annual growth projection.
- Concentrated exposure to one property and market
- Debt service, refinancing, and rate sensitivity
- Active leasing, vendor, and asset oversight
- Vacancy, capex, and maintenance obligations
- Illiquid exit process with timing risk
- Transaction costs can compress realized returns
- Passive exposure without direct operator liability
- Institutional underwriting and acquisition discipline
- Professional asset management and reporting
- Strategy designed to reduce single-asset concentration
- 9% annual target growth projection for comparison
- Curated deal flow with a passive capital framework
Calculating the comparison…
* REI Capital Growth uses a 9% target annual growth projection for comparison only. Returns are not guaranteed and actual results may vary. Consult a financial professional before making investment decisions.
Built for investors evaluating passive commercial real estate exposure
REI Capital is positioned for investors who want institutional-quality underwriting, disciplined capital deployment, and real estate exposure without managing the asset directly.
Accredited Investors
Deploy capital into a professionally managed real estate strategy without taking on daily operator responsibilities.
Family Offices
Evaluate long-duration CRE exposure with an emphasis on underwriting discipline and capital preservation.
1031 Exchange Buyers
Compare direct replacement ownership against passive alternatives with reduced operational complexity.
High-Income Professionals
Access commercial real estate exposure while preserving time, focus, and liquidity for core priorities.
Where Your NOI Goes Each Month
* Distribution based on current inputs. Actual expenses may vary.
ROI Over Time: Direct Ownership vs REI Capital
* Property return uses a conservative 3.8%–4.2% annual capital appreciation assumption. REI Capital uses a 9% target projection. Returns are not guaranteed.
Your Down Payment: Direct Ownership vs REI Capital Platform Exposure
Same starting capital. Compare a direct ownership path against passive capital deployment through REI Capital.
* "Direct ownership" shows the same down payment growing at the selected 3.8%–4.2% annual capital appreciation rate. "REI Capital" shows the same down payment growing at 9% annual target. Returns are not guaranteed.
Why sophisticated investors choose passive CRE exposure
Direct ownership can be powerful, but it also concentrates capital, time, and execution risk into one asset. Passive CRE exposure helps investors participate in professionally managed real estate strategies while reducing the operational burden of owning the property themselves.
- Professional underwriting before capital deployment
- Reduced exposure to single-asset operational demands
- Access to institutional sourcing and asset management
- Passive framework built for long-term capital strategy
- Clearer comparison against direct ownership costs
- Time-efficient exposure for qualified investors
A more efficient way to deploy capital
The analysis above is only the starting point. Review the REI Capital investment materials to understand the acquisition strategy, underwriting framework, risk controls, and investor onboarding process behind the 9% target projection.
- Acquisition strategy & deal flow
- Underwriting and risk framework
- Platform team and execution process
- Investor qualification and next steps
For qualified investors · Private overview · PDF access
Investment Due Diligence For 123 Orange Grove Ave, San Fernando, CA Income Property
Key questions for informed investment decisions
Things Near 123 Orange Grove Ave, San Fernando, CA
Public Transportation
0.3 milesRestaurants & Dining
0.2 milesShopping Center
0.5 milesParks & Recreation
0.8 milesAbout San Fernando
San Fernando, CA is a stable investment market with a median household income of $55,192 and relatively low poverty rate of 13.8%. This market tends to attract a diverse population, with 46.7% of residents identifying as Hispanic, 27.2% as White, and 16.7% as Other. The foreign-born rate of 34.6% suggests a strong international influence. With a median age of 32.2 and an average commute time of 26.6 minutes, this city offers a relatively young and mobile workforce. The top industries, including Information, Public Administration, and Transportation & Warehousing, & Utilities, provide a solid foundation for employment. However, the 13.8% poverty rate and a GINI coefficient of 0.387 indicate some income inequality, which could pose challenges for investors. On the other hand, the high health insurance coverage rate of 85.9% and a homeownership rate of 57.0% suggest a relatively stable and secure population. Overall, San Fernando, CA presents a mix of opportunities and challenges for investors, with its diverse population, relatively low poverty rate, and strong industries offering potential for growth, but also requiring careful consideration of the local economic and social dynamics. With a population of 23,830 and a median property value of $285,500, this market is worth exploring for those looking to invest in a stable and diverse community.
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