| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 80th | Good |
| Demographics | 94th | Best |
| Amenities | 98th | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 901 3rd St, Santa Monica, CA, 90403, US |
| Region / Metro | Santa Monica |
| Year of Construction | 1973 |
| Units | 32 |
| Transaction Date | 2015-08-19 |
| Transaction Price | $18,500,000 |
| Buyer | Starpoint Properties, LLC |
| Seller | --- |
901 3rd St Santa Monica Multifamily Investment
This 32-unit property built in 1973 sits in a neighborhood ranking 5th among 1,441 LA metro neighborhoods for overall investment quality. Strong renter demand is supported by 70.4% rental occupancy and proximity to major corporate employers.
Located in Santa Monica's urban core, this neighborhood ranks in the top quartile nationally across multiple investment metrics. The area maintains a 70.4% rental occupancy share, significantly above typical suburban markets, indicating sustained renter demand. Median contract rents of $2,223 have grown 31.4% over five years, reflecting pricing power in this coastal location.
Demographics within a 3-mile radius show a mature renter base with median household income of $129,192 and 66.1% of housing units occupied by renters. Population forecasts indicate 4.9% growth through 2028, supporting expansion of the renter pool. The area attracts educated professionals, with 43% holding bachelor's degrees.
The 1973 construction year aligns with the neighborhood average, suggesting potential value-add opportunities through unit upgrades and common area improvements. High amenity density includes 39 restaurants per square mile and top-tier school ratings averaging 5.0 out of 5, supporting tenant retention. Net operating income per unit averages $20,755 neighborhood-wide, ranking 25th among metro neighborhoods.
Home values averaging $1.25 million reinforce rental demand, as elevated ownership costs keep households in the multifamily market. However, investors should monitor occupancy trends, as neighborhood-level occupancy has declined 1.5% over five years, suggesting the need for competitive positioning on amenities and lease terms.
Safety metrics present mixed signals requiring careful consideration. The neighborhood ranks 1,354th out of 1,441 metro neighborhoods for property crime rates, placing it in the bottom quartile locally. Property offense rates of 3,883 per 100,000 residents rank in the 4th percentile nationally, indicating elevated risk compared to most US neighborhoods.
Recent trends show property crime increasing 48.8% year-over-year, while violent crime rose 14.9%. These statistics suggest investors should factor security considerations into property management strategies, including enhanced lighting, access controls, and tenant screening protocols. The urban core location brings both opportunity and inherent security challenges typical of dense coastal markets.
The local employment base includes several major corporate headquarters and offices within reasonable commuting distance, supporting workforce housing demand.
- Abbott Laboratories — pharmaceutical & healthcare (1.8 miles) — HQ
- Activision Blizzard — gaming & entertainment (3.0 miles) — HQ
- Occidental Petroleum — energy & oil (4.3 miles) — HQ
- Microsoft Offices The Reserves — technology (5.5 miles)
- AECOM — engineering & construction (5.6 miles) — HQ
This Santa Monica property offers exposure to one of LA's strongest rental markets, with neighborhood fundamentals ranking 5th out of 1,441 metro areas. The 1973 vintage presents value-add potential through strategic renovations, while the coastal location and high-income renter base support premium positioning. According to CRE market data from WDSuite, the area generates above-average NOI per unit at $20,755, indicating strong cash flow potential.
Demographic projections show 4.9% population growth and 37% household expansion through 2028, expanding the renter pool in an already supply-constrained market. However, recent occupancy softening and elevated crime rates require active management strategies. The property's proximity to major employers like Abbott Laboratories and Activision Blizzard provides workforce housing appeal for professional tenants.
- Top 1% neighborhood ranking among LA metro multifamily markets
- Value-add opportunity with 1973 construction allowing unit modernization
- Strong rental demand supported by $1.25M median home values
- Projected 37% household growth expanding renter base through 2028
- Risk factors include declining occupancy trends and elevated crime rates requiring active management