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1720 Cerritos Ave, Long Beach, CA 90813 | Multifamily Income Property

1720 Cerritos Ave, Long Beach, CA 90813
Featured High Yield Multifamily
REI Capital advisor
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Market Insight

Opportunity

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.

Market Insight

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.

Market Insight

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.

Market Insight

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.

Market Insight

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.

$2,100,000
Investment Value
7.00%
CAP Rate
📈 Strong 7.00% cap rate vs market average.
$144,960
Annual NOI
💰 High NOI demonstrates strong operational efficiency.
6,074 SF
Rentable Area
🏢 Optimal size for institutional investors.
$345.74
Price per SF
🎯 Attractive price per SF vs comparable properties.

Long Beach, CA Multifamily 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 Property Tax Rate 1.25%
Cap Rate 7.00% Annual NOI $144,960
Price $2,100,000 Price/SF $345.74
Location Long Beach, 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
1.25%
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

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💵 Cash on Cash Return

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🚀 Internal Rate of Return

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🏛️ Property Tax Analysis

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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.

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

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Investment Due Diligence For 1720 Cerritos Ave, Long Beach, CA Income Property

Key questions for informed investment decisions

Investment Thesis: What is the core investment thesis for this property? +
The core investment thesis centers on acquiring a value-add multifamily asset in a prime coastal location with strong immediate cash flow and significant upside potential. This 7-unit Class C apartment building, built in 1963, offers a high 7.00% cap rate and robust NOI of $144,960, providing stable income from day one. Its location in Long Beach's 90813 ZIP code taps into high demand in a supply-constrained Southern California rental market. The property is positioned for operational improvements and cosmetic renovations to drive rental rate increases, reduce expenses, and enhance equity value. Investors can capitalize on the combination of current yield, land value in a desirable area, and long-term appreciation in the Greater Los Angeles region.
Financials: What are the key financial metrics and how do they compare to market averages? +
Key financial metrics include a sale price of $2,100,000, translating to $300,000 per unit and $345.74 per square foot. The cap rate of 7.00% is above regional averages for Class C multifamily assets in coastal California, indicating an attractive yield relative to price. The Net Operating Income (NOI) is $144,960, reflecting efficient current operations. These metrics suggest the property is undervalued or has upside potential, especially when compared to newer or renovated buildings in the area. The strong NOI supports debt service and provides a cushion for value-add initiatives, while the per-unit price offers scalability for portfolio growth.
Location: What makes the location in Long Beach strategically advantageous for investors? +
The property is situated at 1720 Cerritos Ave in Long Beach, CA 90813, a thriving coastal submarket with resilient demand drivers. Benefits include proximity to major employment hubs like the Port of Long Beach, healthcare facilities, and educational institutions, ensuring a diverse tenant pool. The area offers a desirable Southern California lifestyle with access to amenities, transportation, and entertainment. Zoning as LBR3S (Limited Density Multiple Residence) supports future redevelopment or density increases. The location's supply constraints and population growth contribute to low vacancy rates and rental stability, enhancing long-term investment security.
Risks: What are the primary risks associated with this investment, and how can they be mitigated? +
Primary risks include the property's age (built in 1963), which may require capital reserves for system updates (e.g., plumbing, electrical, roofing) and potential deferred maintenance. As a Class C asset in California, it faces regulatory risks such as rent control ordinances and evolving zoning compliance requirements. Market risks include economic downturns impacting tenant affordability, though the coastal location provides some resilience. Mitigation strategies involve conducting thorough inspections, budgeting for capital expenditures, implementing phased renovations to minimize disruption, staying informed on local regulations, and maintaining adequate insurance and reserves. The strong current NOI and high cap rate help offset these risks.
Value-Add Opportunities: What specific value-add opportunities exist to increase returns? +
Value-add opportunities include cosmetic renovations such as updating kitchens and bathrooms, replacing flooring, and refreshing common areas to justify rental premiums. Operational improvements can involve installing energy-efficient appliances, upgrading HVAC systems, and enhancing landscaping to reduce utility costs and attract tenants. Amenity upgrades like modernizing laundry facilities, adding smart home features, or improving parking areas can boost tenant satisfaction and retention. Additionally, exploring rent optimization strategies, renegotiating service contracts, and implementing technology for property management can increase NOI. The zoning allows for potential reconfiguration or expansion, adding long-term optionality. These initiatives aim to elevate the property to Class B- standards, driving higher rents and equity appreciation.

Things Near 1720 Cerritos Ave, Long Beach, CA

Public Transportation

0.3 miles

Restaurants & Dining

0.2 miles

Shopping Center

0.5 miles

Parks & Recreation

0.8 miles

About Long Beach

Long Beach, CA is a city with a population of 465,424 and a median age of 33.9, offering a unique blend of opportunities and challenges for investors. The median household income is $52,711, which is relatively stable, but the poverty rate of 17.7% suggests some risk. The city's diverse economy, with top industries in information, public administration, finance, and real estate, provides a solid foundation for investment. However, the high income inequality, as indicated by a GINI coefficient of 0.476, and the relatively low homeownership rate of 40.4% are factors to consider. The average commute time of 28.7 minutes is relatively manageable, and the high health insurance coverage rate of 87.9% is a positive indicator of the city's quality of life. The foreign-born rate of 27.8% and the diverse ethnic makeup, with White, Hispanic, and White Non-Hispanic populations, contribute to the city's cultural richness. While the violent crime rate of 556.6 per 100,000 and property crime rate of 2,514.1 per 100,000 are concerns, the city's overall stability and potential for growth make it an attractive investment opportunity. With a median property value of $417,600 and median property taxes of $66,964, investors should carefully weigh the costs and benefits of investing in Long Beach.

Population 465,424
Median Age 33.9
Avg. Household Income $52,711
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