1644 Monterey Blvd 12 Unit Apartment Building Offered at $4,850,000 at a 6.13% Cap Rate Hermosa Beach, CA 90254

The Cohen Group is pleased to present 1644 Monterey Boulevard, a rare 12-unit multifamily investment opportunity in the heart of Hermosa Beach — first time on the market in 40 years, this offering represents a tremendous and truly unique opportunity to acquire a coastal asset that rarely, if ever, becomes available. Situated just blocks from the sand, The Strand, Hermosa Beach Pier, and the shops, restaurants, and entertainment along Pier Avenue, the property offers an exceptional coastal location in one of Southern California's most desirable and tightly held rental markets. Residents enjoy a highly walkable beach lifestyle while remaining approximately six miles from LAX and within convenient reach of the South Bay's major employment centers.
Built in 1924, the property contains approximately 6,132 square feet on a 6,395-square-foot lot and consists of 12 one-bedroom units, including five 1-bedroom/0.75-bath units and seven 1-bedroom/1-bath units. Several units feature ocean views, walk-in closets, and newer windows, while kitchens have been upgraded to varying degrees throughout the property. One unit also includes an unusually large bonus family room, providing a differentiated floor plan with the potential to command premium rental income. The property offers a paver-lined courtyard and additional outdoor areas on both sides of the building, along with two single-car garages, one additional parking space, and an on-site laundry room.
A major highlight of the offering is that 10 of the 12 units are currently vacant, providing a new owner with the unusual ability to immediately implement a renovation, repositioning, and lease-up program without the lengthy turnover process typically associated with multifamily acquisitions in the area. Ownership has also invested significantly in the property, including updated plumbing and electrical systems throughout, with new main and sub-electrical panels, reducing near-term capital requirements and allowing a buyer to focus on the property's revenue potential.
The extensive vacancy unlocks exceptional upside and flexibility for a buyer to pursue a traditional long-term multifamily lease-up, explore a short-term rental strategy, or blend the two — creating multiple distinct profit centers within a single asset. Notably, a recent Los Angeles Superior Court ruling struck down the City of Hermosa Beach's prior ban on short-term vacation rentals in the coastal zone, and the City has since opted not to appeal, opening a registration and tax-payment pathway for STVR operators citywide. This landmark legal shift dramatically expands the revenue potential of this asset, positioning 1644 Monterey Boulevard to capture premium nightly rates in one of the most in-demand beach markets in Southern California. Buyer to independently verify short-term rental regulations, permitting, feasibility, and projected rents.
With its beach-adjacent location, extensive vacancy, existing capital improvements, outdoor amenity space, and multiple potential operating strategies, 1644 Monterey Boulevard offers a rare and compelling opportunity to acquire and reposition a trophy multifamily asset in one of the South Bay's highest-barrier-to-entry coastal communities.