Back to Dashboard

123 Orange Grove Ave, San Fernando, CA 91340 | Multifamily Income Property

123 Orange Grove Ave, San Fernando, CA 91340
Featured High Yield Multifamily
REI Capital advisor
Advertisement
Market Insight

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.

Market Insight

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.

Market Insight

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.

Market Insight

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.

Market Insight

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.

$1,275,000
Investment Value
7.76%
CAP Rate
📈 Strong 7.76% cap rate vs market average.
$98,945
Annual NOI
💰 High NOI demonstrates strong operational efficiency.
10,888 SF
Rentable Area
🏢 Optimal size for institutional investors.
$117.10
Price per SF
🎯 Attractive price per SF vs comparable properties.

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
REI Capital advisor
Align Your Capital Strategy

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.

REI Capital advisor

Model your investment returns and cash flow projections

25%
5.0%
30 years
1.37%
5 years
4.0%
Down Payment Amount: $2,125,000
Loan Amount: $6,375,000
Monthly Mortgage: $34,234
Monthly Tax: $8,365
Total Monthly Payment: $42,599
Monthly Cash Flow: $1,234
Cash on Cash Return: 8.7%
Cap Rate: 6.2%
Debt Coverage Ratio: 1.54x
IRR (5 years): 12.3%
Projected Property Value: $9,854,932
Net Equity at Sale: $4,567,890
📊 Monthly Payment Analysis

Calculating...

💵 Cash on Cash Return

Calculating...

🚀 Internal Rate of Return

Calculating...

🏛️ Property Tax Analysis

Calculating...

* 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.

Capital Allocation Comparison

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.

Direct Property Ownership
  • 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
Projected direct ownership outcome Calculating…
VS
REI Capital Platform Exposure
  • 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
Projected platform exposure at 9% target Calculating…
Projected difference

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.

Who This Is Designed For

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.

Deployment Scenario Analysis

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 (3.8%–4.2% appreciation) REI Capital (9% target)

* "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.

Allocation Rationale

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
Investor Materials

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
Access Investment Materials

For qualified investors · Private overview · PDF access

Advertisement

Investment Due Diligence For 123 Orange Grove Ave, San Fernando, CA Income Property

Key questions for informed investment decisions

What is the investment thesis for this property? +
This 5-unit multifamily property in San Fernando offers a balanced opportunity for strong cash flow and value-add appreciation. Priced at $1,275,000 with a Net Operating Income (NOI) of $98,945, it generates a cap rate of 7.76%, which is above average for Class C assets in the Greater Los Angeles area. The property is positioned as a value-add play—built in 1986 with no recent renovations, it allows for strategic upgrades to increase rents and property value. Additionally, its zoning (SFR3* - Industrial General) provides flexibility for potential mixed-use redevelopment, enhancing long-term upside in a growing market with increasing demand for affordable housing.
What are the key financial metrics and performance indicators? +
- **Sale Price:** $1,275,000 - **Price per Unit:** $255,000 - **Price per Square Foot:** $117.10 - **Net Operating Income (NOI):** $98,945 - **Cap Rate:** 7.76% - **Building Size:** 10,888 SF - **Lot Size:** 0.19 acres The property’s cap rate of 7.76% indicates strong current income relative to the purchase price, supported by individually metered utilities for gas and electric, which help control operational costs and improve cash flow stability.
How does the location and zoning benefit the investment? +
Located at 123 Orange Grove Ave in San Fernando, CA, the property is in a strategic area with proximity to key transportation routes like I-5 and SR-118, facilitating access to the broader Los Angeles region. San Fernando is experiencing growth due to urban development and rising demand for affordable housing. The zoning designation—SFR3* - Industrial General—allows for versatile land use, including potential residential, commercial, or mixed-use redevelopment, which can enhance long-term value and adaptability to market trends.
What are the main risks, and how can they be mitigated? +
As a Class C property built in 1986, risks include potential higher tenant turnover, aging infrastructure, and the industrial zoning possibly impacting residential desirability. However, these are mitigated by: - Strong cash flow from the current NOI and below-market pricing. - A value-add strategy focusing on cosmetic renovations (e.g., unit upgrades, common area improvements) to increase appeal and reduce vacancy. - The zoning flexibility, which allows for adaptive reuse if market conditions shift. Due diligence, including a physical inspection and review of local regulations, is recommended to address these risks proactively.
What value-add opportunities exist to increase returns? +
Several value-add opportunities can enhance returns: - **Interior Renovations:** Modernizing unit interiors (kitchens, bathrooms, flooring) to command higher rents. - **Operational Efficiencies:** Leveraging individually metered utilities to promote tenant accountability and reduce costs. - **Common Area Upgrades:** Improving exterior aesthetics, landscaping, or adding amenities to boost curb appeal. - **Zoning Utilization:** Exploring mixed-use potential under the industrial-general zoning for long-term redevelopment. These upgrades, combined with optimized property management, can increase rental income, reduce expenses, and drive property appreciation, offering an estimated upside beyond the current 7.76% cap rate.

Things Near 123 Orange Grove Ave, San Fernando, CA

Public Transportation

0.3 miles

Restaurants & Dining

0.2 miles

Shopping Center

0.5 miles

Parks & Recreation

0.8 miles

About 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.

Population 23,830
Median Age 32.2
Avg. Household Income $55,192
Advertisement

Community Discussion

Share your thoughts and insights about this property

0 commentsLast activity: Never

Be the first to comment!

Start the conversation about this property.