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The Palms 3929 W 242nd St 48 Unit Apartment Building $15,500,000 ($322,917/Unit) 5.13% Cap Rate Torrance, CA 90505
Investment Highlights
- Prime Location: 48-unit multifamily investment asset located in Torrance, California.
- Favorable Unit Mix: Strong base of 38 one-bedroom units, complemented by 10 two-bedroom units.
- Community Design: Garden-style layout with buildings oriented around inviting, shared interior courtyards.
- Substantial Footprint: 36,096 net rentable square feet situated on a spacious 1.03-acre lot (built in 1961).
- Proven Upside: 8 units have already been extensively renovated with luxurious finishes.
- Desirable Amenities: Features a swimming pool, resident clubhouse, and two on-site laundry facilities.
Executive Summary
Marcus & Millichap, as the exclusive listing broker, is pleased to present The Palms, a 48-unit multifamily investment opportunity located at 3929 West 242nd Street in Torrance, California. Built in 1961, the property sits on a 1.03-acre lot and features approximately 36,096 net rentable square feet, with apartment buildings arranged around spacious interior courtyard areas.
The Palms features a garden-style layout, with apartment buildings oriented around interior courtyards that provide residents with shared outdoor space. The site also accommodates common area circulation, resident amenities, and a substantial covered parking component within the property’s 1.03-acre footprint.
The unit mix consists of 38 one-bed/one-bath units, 6 two-bed/one-bath units, and 4 two-bed/two-bath units. This composition provides a strong base of one-bedroom floor plans while also including a selection of larger two-bedroom units. Current ownership has extensively renovated 8 units with luxurious finishes. The property features a swimming pool, clubhouse, gated access, two on-site laundry facilities, and covered parking. Parking is provided through 45 tuck-under spaces, 2 surface spaces, one single-car garage, and one double-car garage, giving The Palms a substantial covered parking component relative to its unit count. Overall, The Palms represents an established Torrance multifamily asset with scale, a predominantly onebedroom unit mix, courtyard-style design, on-site amenities, gated access, and covered parking.
*Drive by only. Do not walk the property or disturb the residents. Please contact the Listing Agent(s).*
The Palms features a garden-style layout, with apartment buildings oriented around interior courtyards that provide residents with shared outdoor space. The site also accommodates common area circulation, resident amenities, and a substantial covered parking component within the property’s 1.03-acre footprint.
The unit mix consists of 38 one-bed/one-bath units, 6 two-bed/one-bath units, and 4 two-bed/two-bath units. This composition provides a strong base of one-bedroom floor plans while also including a selection of larger two-bedroom units. Current ownership has extensively renovated 8 units with luxurious finishes. The property features a swimming pool, clubhouse, gated access, two on-site laundry facilities, and covered parking. Parking is provided through 45 tuck-under spaces, 2 surface spaces, one single-car garage, and one double-car garage, giving The Palms a substantial covered parking component relative to its unit count. Overall, The Palms represents an established Torrance multifamily asset with scale, a predominantly onebedroom unit mix, courtyard-style design, on-site amenities, gated access, and covered parking.
*Drive by only. Do not walk the property or disturb the residents. Please contact the Listing Agent(s).*
Financial Summary (Actual - 2026) |
Annual | Annual Per SF |
|---|---|---|
| Gross Rental Income |
$1,293,480
|
$35.83
|
| Other Income |
$12,624
|
$0.35
|
| Vacancy Loss |
$38,804
|
$1.08
|
| Effective Gross Income |
$1,267,300
|
$35.11
|
| Taxes |
$171,016
|
$4.74
|
| Operating Expenses |
$310,467
|
$8.60
|
| Total Expenses |
$481,483
|
$13.34
|
| Net Operating Income |
$785,817
|
$21.77
|
Financial Summary (Actual - 2026)
| Gross Rental Income | |
|---|---|
| Annual | $1,293,480 |
| Annual Per SF | $35.83 |
| Other Income | |
|---|---|
| Annual | $12,624 |
| Annual Per SF | $0.35 |
| Vacancy Loss | |
|---|---|
| Annual | $38,804 |
| Annual Per SF | $1.08 |
| Effective Gross Income | |
|---|---|
| Annual | $1,267,300 |
| Annual Per SF | $35.11 |
| Taxes | |
|---|---|
| Annual | $171,016 |
| Annual Per SF | $4.74 |
| Operating Expenses | |
|---|---|
| Annual | $310,467 |
| Annual Per SF | $8.60 |
| Total Expenses | |
|---|---|
| Annual | $481,483 |
| Annual Per SF | $13.34 |
| Net Operating Income | |
|---|---|
| Annual | $785,817 |
| Annual Per SF | $21.77 |
Property Facts
| Price | $15,500,000 | Apartment Style | Low-Rise |
| Price Per Unit | $322,917 | Building Class | C |
| Sale Type | Investment | Lot Size | 1.03 AC |
| Cap Rate | 5.13% | Building Size | 36,096 SF |
| Gross Rent Multiplier | 11.87 | Average Occupancy | 100% |
| No. Units | 48 | No. Stories | 2 |
| Property Type | Multifamily | Year Built | 1961 |
| Property Subtype | Apartment | Parking Ratio | 1.33/1,000 SF |
| Zoning | TOCR-MH | ||
| Price | $15,500,000 |
| Price Per Unit | $322,917 |
| Sale Type | Investment |
| Cap Rate | 5.13% |
| Gross Rent Multiplier | 11.87 |
| No. Units | 48 |
| Property Type | Multifamily |
| Property Subtype | Apartment |
| Apartment Style | Low-Rise |
| Building Class | C |
| Lot Size | 1.03 AC |
| Building Size | 36,096 SF |
| Average Occupancy | 100% |
| No. Stories | 2 |
| Year Built | 1961 |
| Parking Ratio | 1.33/1,000 SF |
| Zoning | TOCR-MH |
Amenities
Unit Amenities
- Heating
- Kitchen
Site Amenities
- Courtyard
Unit Mix Information
| Description | No. Units | Avg. Rent/Mo | SF |
|---|---|---|---|
| 1+1 | 38 | - | 700 |
| 2+1 | 6 | - | 1,000 |
| 2+2 | 4 | - | 1,100 |
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Moderately walkable
70/100
Moderately drivable
70/100
Limited public transit
30/100
Fairly bikeable
40/100
Property Taxes
| Parcel Number | 7534-006-020 | Total Assessment | $17,318,913 (2025) |
| Land Assessment | $6,494,592 (2025) | Annual Taxes | $171,016 ($4.74/SF) |
| Improvements Assessment | $10,824,321 (2025) | Tax Year | 2026 Payable 2026 |
Property Taxes
Parcel Number
7534-006-020
Land Assessment
$6,494,592 (2025)
Improvements Assessment
$10,824,321 (2025)
Total Assessment
$17,318,913 (2025)
Annual Taxes
$171,016 ($4.74/SF)
Tax Year
2026 Payable 2026
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