905-915 Cherry Ave

Investment Overview

905-915 Cherry Ave is a 26-unit multifamily offering in central Long Beach (90813) consisting of two mirrored 13-unit Spanish-style buildings, each on its own separate parcel. Because each building sits at 13 units, neither crosses the 16-unit threshold that requires an on-site resident manager, allowing the property to run as a 26-unit asset without a manager’s unit or payroll. The mix is (24) 1BD/1BA and (2) 2BD/1BA across 15,328 SF (built 1922), with 17 of 26 units renovated and additional value-add remaining through continued interior renovations and rent growth. Both buildings have passed their SB 721 balcony inspections and are compliant through January 1, 2032.

The investment is supported by recent, tangible capital improvements, including upgraded electrical throughout both buildings (Buyer to verify), upgrades to sections of the copper water lines and drain/sewer lines at both buildings, guardrail upgrades to current code, a renovated laundry room with a new vendor and new machines, and fresh landscaping. Operationally, the property offers (12) on-site garages, on-site laundry, and a pro forma RUBS program for water, sewer and trash.

At the offering price, the property is positioned as a strong in-place performer with a clear runway: a 6.10% current cap rate and 10.38 GRM on current total gross income, with a projected 7.25% cap rate and 9.21 GRM at pro forma — rents of $1,845 (1BD) and $2,445 (2BD) and garages at $150 per month — roughly 13% upside in total gross income as remaining units are renovated and rents are brought in line with pro forma levels.

The existing $3,100,000 JPMorgan Chase loan is assumable at 5.97% interest-only, roughly 53% of the listing price, and the seller has prepared conceptual plans for (6) ADUs on the existing garage footprint, taking the property from 26 to 32 units (Buyer to verify).

The asset is not subject to local rent control (subject to statewide AB 1482), providing a flexible path to capturing upside in a central Long Beach rental pocket minutes from Downtown, Retro Row and the Space Beach aerospace corridor.