1512 Sherman Pl, Long Beach, CA 90804

Property Overview

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1512 Sherman Pl is an eleven-unit multifamily investment offered at $2,800,000 ($254,545/unit | $292.98/SF) in Long Beach, positioned as a stabilized cash-flow opportunity in an established, renter-focused submarket where consistent occupancy and straightforward acquisition metrics remain attractive for income-focused investors seeking immediate NOI generation. Built in 1963 on a 15,291 SF lot, the property features a balanced unit mix of six 2+1 units, three 1+1 residences, and two 3+2 units across 9,557 SF of building area.

Currently, all eleven units are occupied and generating $23,420 in monthly rent at a 6.62% in-place cap rate. Rents average $2,129 per unit against market rents of $2,185 — a modest 2.68% discount reflecting a fully stabilized, market-normalized asset.

Subject to the Long Beach Rent Stabilization Ordinance, the incoming owner captures rent increases at each vacancy. At full market rent, NOI grows from $185,239 to $192,574, delivering a 6.88% pro forma cap rate and a 9.71 GRM. The property's separately metered utilities shift costs to residents, keeping current expenses at just 35.19% of EGI — a lean operating profile. Ownership has invested nearly $330,000 in comprehensive capital improvements including full roof replacement, new windows, upgraded systems, and complete interior rehab of all units. With no deferred maintenance and established operational discipline, the asset is well-positioned as a day-one cash-flow investment requiring minimal active management in a supply-constrained rental submarket.

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Key Property Details

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• Address: 1512 Sherman Pl, Long Beach, CA 90804
• Units: 11
• Unit Mix: (6) 2+1, (3) 1+1, (2) 3+2
• Rent Control: Subject to Long Beach RSO
• Occupancy: 100% (11/11 Units)

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Investment Highlights

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• Immediate Cash Flow From Day One — Fully Occupied, No Lease-Up Risk: All eleven units are currently generating immediate $23,420/month income from close of escrow at a 6.62% current cap rate. No speculative lease-up timeline; cash flow covers debt service and operations from day one. This is fully stabilized, market-normalized product — hard to source at this price point and vintage class.
• Organic Rent Growth With Zero Capital Required: Rents average $2,129 per unit versus market rents of $2,185 — a narrow 2.68% gap reflecting a fully market-normalized property. Subject to the Long Beach Rent Stabilization Ordinance, the incoming owner captures rent increases systematically at each lease renewal. At full market rent, NOI grows from $185,239 to $192,574, delivering a 6.88% pro forma cap rate — approximately $7,440 in annualized NOI growth, captured purely through straightforward lease execution with no capital expenditure.
• Recently Capitalized Asset — No Heavy Lifting Required: Ownership has invested nearly $330,000 in comprehensive capital improvements: full roof replacement, all-new windows, upgraded electrical and plumbing systems, parking area upgrades, landscaping/lighting/fencing, and complete interior rehab of all eleven units. No deferred maintenance, no retrofit obligations, no significant capex requirements. This is a fantastic product in its current form — maintenance is routine, not intensive.
• Lean Operating Profile With Strong Efficiency Metrics: Operating expenses represent just 35.19% of effective gross income — well below peer averages for this vintage and class of property. Electric, gas, water, and sewer are separately metered and tenant-paid (RUBS), eliminating landlord exposure to utility escalation and reducing direct operating cost volatility. Per-unit annual operating expense of just $9,142, underpinned by economical utility, maintenance, and administrative costs. The property is operationally tight and produces strong cash flow relative to total income — no operational bloat.

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Neighborhood and Accessibility

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1512 Sherman Pl sits in an established residential corridor in Long Beach, within walking distance to retail, food service, and neighborhood services that define everyday livability. The area draws working renters seeking affordable multifamily housing in close proximity to employment centers, public transit, and urban amenities without premium neighborhood pricing.

The property benefits from immediate access to the Long Beach Transit system and the 405/710 freeway corridors, positioning residents within 15–20 minutes of job clusters across greater Los Angeles — from downtown LA employment to port and logistics facilities south. More importantly, the location sits on one of Long Beach's proven residential corridors. Retail, food service, employment centers, and transit infrastructure cluster within walking distance — the kind of everyday convenience that keeps tenants in place. High accessibility drives high occupancy.

Long Beach's zoning constraints and limited new multifamily entitlements ensure existing rental inventory remains well-occupied with minimal concessions, supporting consistent rent growth, durable tenant demand, and predictable long-term asset appreciation for stabilized operators. For investors, this translates to a proven rental submarket where housing affordability meets supply-constrained development — creating a reliable income asset with stable occupancy and long-term appreciation potential.

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For more information and to schedule a viewing, please contact:

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Taylor Avakian

Founder, The Group CRE

First Vice President, Lyon Stahl