| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 76th | Fair |
| Demographics | 55th | Good |
| Amenities | 96th | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 425 E 3rd St, Long Beach, CA, 90802, US |
| Region / Metro | Long Beach |
| Year of Construction | 1986 |
| Units | 98 |
| Transaction Date | 2004-08-24 |
| Transaction Price | $3,502,000 |
| Buyer | MASUDA INVESTMENTS LLC |
| Seller | CTA LP |
425 E 3rd St, Long Beach Multifamily Opportunity
Downtown Long Beach's Urban Core shows durable renter demand and amenity density that support leasing and retention, according to WDSuite's CRE market data. The neighborhood's high renter concentration and steady occupancy suggest a broad tenant base for operators focused on professional, service, and hospitality workers through thoughtful commercial real estate analysis.
Positioned in Long Beach's Urban Core, the property benefits from a high-amenity environment and a renter-oriented housing mix. The neighborhood ranks 185 out of 1,441 metro neighborhoods overall (above metro median), signaling competitive fundamentals within the Los Angeles-Long Beach-Glendale metro, based on WDSuite's CRE market data.
Amenity access is a clear strength. The area's restaurants, cafes, groceries, pharmacies, and parks are each in the top quartile nationally, with restaurants and grocery density among the strongest performers. This concentration of daily-needs and lifestyle options supports leasing velocity and reduces friction for residents who prioritize walkability and convenience.
For multifamily investors, depth of renter demand is a key positive. The neighborhood shows a high share of renter-occupied housing units (top percentile locally), which expands the prospective tenant pool and can underpin occupancy stability across market cycles. Neighborhood occupancy is healthy by national standards, offering a base level of stability while still allowing operators to create value through upgrades and active leasing strategies.
Construction vintage in the surrounding area skews older (average 1963). With a 1986 build, this property is newer than much of the nearby stock, indicating relative competitive positioning versus pre-1970 assets. Investors should still underwrite for modernization of building systems and common areas to maintain an edge against newer deliveries.
Demographic indicators within a 3-mile radius point to a stable-to-improving renter base: households have increased even as population edged lower, reflecting smaller household sizes and more one- to two-person renter households. Projections through 2028 show further household growth and rising incomes, which supports occupancy stability and potential for rent optimization over time.
Home values in the neighborhood are elevated relative to incomes, a dynamic that sustains reliance on multifamily rentals and can aid lease retention. At the same time, rent-to-income levels require thoughtful pricing and renewal management to balance revenue goals with affordability pressure in the tenant base.
Schools rate below national averages in this location, which is less critical for smaller-unit assets targeting young professionals but remains a consideration for properties appealing to families. On the operating side, neighborhood NOI per unit trends in the top decile nationally, indicating that well-executed multifamily operations here have historically produced solid per-unit income relative to other U.S. neighborhoods.
Safety metrics in this neighborhood trend weaker than national norms, per WDSuite's CRE market data. While crime can vary block to block and improve with local initiatives, investors should underwrite for enhanced security, lighting, and property management presence to support resident experience and retention.
Compared with other neighborhoods nationwide, current indicators sit below the national median; operators commonly address this through access control, camera coverage, and partnerships with local community programs. Monitoring trends and allocating targeted capex can help sustain leasing momentum and mitigate turnover risk.
Nearby employers support a diverse workforce tenant base and commuter convenience, led by healthcare, industrial gases, and communications services. The following anchors contribute to consistent demand from professionals working within a short drive of the property.
- Molina Healthcare — healthcare services (0.81 miles) — HQ
- Air Products & Chemicals — industrial gases (3.91 miles)
- Airgas — industrial gases (7.76 miles)
- INTERNATIONAL PAPER Cypress Retail Packaging — packaging & paper products (9.61 miles)
- Time Warner Business Class — communications services (9.94 miles)
425 E 3rd St is a 98-unit 1986-vintage asset positioned in a high-amenity, renter-heavy pocket of Downtown Long Beach. The Urban Core location offers exceptional access to daily needs and entertainment, supporting leasing velocity. Within a 3-mile radius, households have grown despite a modest population dip, indicating smaller household sizes and a broadening renter pool. Elevated ownership costs in the neighborhood tend to reinforce reliance on multifamily housing, aiding retention and pricing power when paired with disciplined renewal strategies. According to CRE market data from WDSuite, neighborhood occupancy is healthy and NOI per-unit performance ranks among the strongest nationally, suggesting operational upside for well-managed assets.
Relative to the surrounding 1960s-dominant stock, a 1986 build can compete effectively with targeted modernization of systems, interiors, and common areas. Operators should also plan for safety-forward property management and consider unit mix positioning given smaller average unit sizes, aligning pricing to manage rent-to-income pressures while capturing demand from single renters and couples.
- Urban Core location with top-tier amenity density supports leasing and retention
- High share of renter-occupied units and healthy neighborhood occupancy expand the tenant base
- 1986 vintage offers competitive positioning versus older local stock; targeted upgrades can drive performance
- Elevated home values sustain rental reliance, aiding renewal capture with disciplined pricing
- Risks: below-median safety metrics and lower school ratings; plan for security investments and focused leasing