1161 E 1st St 12 Unit Apartment Building $3,195,000 ($266,250/Unit) 6.22% Cap Rate Long Beach, CA 90802

1161 E. 1st Street presents the opportunity to acquire a well-maintained 12-unit multifamily property offering strong in-place cash flow, multiple achievable income-growth opportunities, and an exceptional coastal location in Long Beach's highly desirable Alamitos Beach neighborhood.
Strong In-Place Cash Flow with Approximately 20% NOI Growth
Offered at $3,195,000, or $266,250 per unit, the property generates $198,768 in current NOI, equating to an attractive 6.22% in-place cap rate. At stabilization, NOI is projected to increase ±18% to $235,148, supporting a 7.36% stabilized cap rate and providing investors with a compelling combination of immediate yield and future income growth.
Significant Untapped Ancillary Income
A substantial portion of the property's upside can be realized without relying on aggressive rent increases. The property includes eight garages, two surface parking spaces and six storage units, providing $25,200 in potential annual ancillary income that is currently either uncollected or underutilized. This represents nearly half of the property's projected gross income upside and provides a relatively low-risk path to increasing NOI.
Modest Mark-to-Market Rental Upside
In-place rents remain ±7.5% below projected market levels, creating additional organic revenue growth while requiring only a relatively modest mark-to-market strategy. The property's one-bedroom units average $2,033 per month compared with nearby rent comparables averaging ±$2,365 per month, further demonstrating the opportunity to grow income over time.
Oversized Units in a Supply-Constrained Coastal Submarket
The property consists of eleven one-bedroom units (eight are 925SF and three are 800SF) and one 600-square-foot studio. The unusually spacious floorplans differentiate the property from much of the competing Alamitos Beach rental inventory and provide residents with highly desirable living space in one of Long Beach's most walkable coastal neighborhoods.
Over $250,000 in Capital Improvements Already Completed
Ownership has invested more than $250,000 in capital improvements, including unit renovations, plumbing and electrical upgrades, foundation retrofitting, garage door refurbishment and new exterior stucco. These improvements reduce near-term capital expenditure exposure while preserving additional opportunities for a new owner to further enhance the property's operations and income.
Rare Parking & Individually Metered Utilities
The property features eight garages plus two surface parking spaces, a significant competitive advantage in heavily-parking-impacted Alamitos Beach. Units are also separately metered for electricity and gas, helping limit owner-paid utility exposure and supporting efficient long-term operations.
Attractive Basis Relative to Comparable Properties
At $307 per square foot, 1161 E. 1st Street is offered at a ±22% discount to the $394-per-square-foot average of the comparable properties presented in the offering. Combined with the property's oversized units, strong current yield and existing capital improvements, the pricing provides an attractive basis for a coastal Long Beach asset.
Prime Alamitos Beach Location
Located in the heart of Alamitos Beach, the property benefits from immediate access to the beach and bike path, Downtown Long Beach employment, restaurants, shopping and neighborhood amenities. Alamitos Beach maintains a 94 Walk Score and commands a meaningful rental premium over Long Beach overall, reflecting the enduring renter demand and limited supply characteristics of this highly desirable coastal submarket.
Compelling Stabilized Value Creation
The combination of modest rent growth, monetization of existing garages, parking, storage, and laundry, with limited incremental operating expenses is projected to increase NOI from $198,768 to over $235,000. This creates a clear path to enhanced cash flow and meaningful long-term value creation while allowing an investor to acquire an already cash-flowing asset rather than relying on an extensive repositioning strategy.