1940 Chestnut Ave, Long Beach, CA 90813

Property Overview

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1940 Chestnut Ave is a fourteen-unit multifamily investment offered at $3,200,000 ($228,571/unit | $339.09/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 1946 on an 8,152 SF lot, the property features a balanced unit mix of ten 2+1 units, two studios, and two 3+2 residences across 9,437 SF of building area.

Currently, twelve units are occupied and generating $26,595 in monthly rent from close of escrow at a 6.88% in-place cap rate. Rents average $1,899.64 per occupied unit against market rents of $2,003.57 — a modest 5.3% discount. Two units (Units 06 and 08) are positioned at market rent and ready to lease with zero capital expenditure required. This near-market positioning, combined with high occupancy and an established residential corridor, creates a straightforward path to pro forma income through uncomplicated unit turnover with no renovation or capital improvement required.

Subject to the Long Beach Rent Stabilization Ordinance, the incoming owner captures rent increases at each vacancy. At full occupancy with the two vacant units leased at market rate, NOI grows from $220,261 to $237,166, delivering a 7.41% pro forma cap rate and a 9.51 GRM. The property's separately metered utilities shift costs to residents, keeping pro forma expenses at just 33.13% of EGI — a lean operating profile. With established operational discipline and a stable tenant base, the asset is well-positioned as a day-one cash-flow investment with strong fundamentals in a supply-constrained rental submarket.

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Key Property Details

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• Address: 1940 Chestnut Ave, Long Beach, CA 90813
• Units: 14
• Unit Mix: (10) 2+1, (2) Studio, (2) 3+2
• Rent Control: Subject to Long Beach RSO
• Occupancy: 83% (12/14 Units)

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Investment Highlights

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• Immediate Cash Flow From Day One — No Lease-Up Risk: All twelve occupied units are currently generating immediate $26,595/month income from close of escrow at a 6.88% current cap rate. No speculative lease-up timeline; cash flow covers debt service and operations from day one while the property executes straightforward lease-up of two market-ready vacant units at no capital expense.
• Two Market-Ready Vacant Units — Zero Capex, $7,200 Annual NOI Growth: Units 06 and 08 are positioned at market rent ($2,000–$2,500/month range) with no renovation or capital expenditure needed to lease them. The two vacancies represent $16,905 in annualized incremental NOI, captured purely through straightforward leasing execution in a supply-constrained rental market with proven tenant demand. This is execution upside, not speculative upside.
• Lean Operating Profile With Strong Efficiency Metrics: Per-unit annual operating expense of just $8,342 across fourteen units, underpinned by economical utility, maintenance, and administrative costs. At 33.13% expense-to-EGI ratio (pro forma), the property is operationally tight and produces strong cash flow relative to total income — no operational bloat, no rehab, no elevated management overhead.tional bloat, no rehab, no elevated management overhead.
• Constrained Supply Environment + High Walk Score = Occupancy Stability: Long Beach's zoning constraints and limited new multifamily entitlements ensure existing rental inventory remains well-occupied with minimal concessions. Positioned in an established residential corridor with retail, food service, employment centers, and transit infrastructure within walking distance, 1940 Chestnut Ave benefits from durable tenant demand and minimal vacancy risk.

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Neighborhood and Accessibility

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1940 Chestnut Ave 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 and students 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