$670K in CapEx Completed, Sizable Lot for ADU 1628 W 218th St 17 Unit Apartment Building $5,225,000 ($307,353/Unit) 5.21% Cap Rate Torrance, CA 90501

1628-32 W. 218th Street is a turn-key 17-unit multifamily asset located in Torrance, California, one of the South Bay's most stable rental markets.
Built in 1982, the property features a unit mix of eleven (11) 1BD/1BA units and six (6) 2BD/1BA units. Sixteen of the seventeen units have been fully renovated with new kitchens, bathrooms, and flooring. Balcony inspections have been completed with full compliance.
Approximately $670K capital improvements have been completed, including interior renovations, comprehensive exterior upgrades, new windows, roofing and landscaping, delivering a well-maintained asset with minimal near-term capital requirements.
The property benefits from separately metered utilities and an in-place RUBS program, supporting expense recovery and improved operating margins. Additional income is generated through on-site laundry facilities, with immediate upside available through the implementation of parking fees without additional capital investment. The sizable lot further provides the potential to develop ADUs, offering a clear path to increased rental income.
Torrance’s strategic location is a key driver of long-term performance. Centrally positioned within the South Bay, the city sits at the heart of a dense, high-paying employment corridor spanning aerospace, defense, technology, healthcare, and advanced manufacturing. Major employers throughout the South Bay—including those in El Segundo, Hawthorne, and Torrance—support a regional employment base of approximately 500,000 jobs, creating a deep and diversified demand pool for rental housing.
With a median household income exceeding $166,000, strong educational attainment, and approximately 90% population stability, the city attracts well-qualified tenants with longer tenancy duration and consistent rent-paying capacity.
With vacancy rates consistently below 3%, Torrance remains one of the most supply-constrained and fundamentally sound rental markets in Los Angeles County. The combination of strategic location, access to high-wage employment, and a highly stable, affluent renter base continues to drive durable demand, strong occupancy, and long-term rent growth—positioning the property to benefit from sustained performance over time.