| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 87th | Best |
| Demographics | 40th | Poor |
| Amenities | 92nd | Best |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 1940 Wallace Ave, Costa Mesa, CA, 92627, US |
| Region / Metro | Costa Mesa |
| Year of Construction | 1974 |
| Units | 30 |
| Transaction Date | 2022-06-03 |
| Transaction Price | $2,000,000 |
| Buyer | BARNETT FAMILY TRUST |
| Seller | WALLACE 2016 LLC |
1940 Wallace Ave Costa Mesa Multifamily Investment
This 30-unit property sits in a neighborhood with 97.1% occupancy and strong rental demand driven by high homeownership costs. According to CRE market data from WDSuite, the area maintains above-average NOI per unit performance in the Anaheim-Santa Ana-Irvine metro.
Located in Costa Mesa's urban core, this neighborhood ranks in the top quartile nationally for amenity access, with high concentrations of restaurants, cafes, and pharmacies supporting tenant retention. The area maintains a 97.1% occupancy rate with 80.6% of housing units renter-occupied, indicating strong rental market fundamentals.
Built in 1974, this property represents value-add potential in a neighborhood where the average construction year is 1986. The vintage suggests opportunities for capital improvements and modernization to capture higher rents, particularly given the area's median contract rent of $1,863 and 25.8% rent growth over five years.
Demographics within a 3-mile radius show a stable tenant base with median household income of $128,791 and projected growth to $170,186 by 2028. High home values averaging $816,058 with a 43.3% five-year appreciation reinforce rental demand, as elevated ownership costs keep households in the rental market. The forecast indicates household growth of 31.3% through 2028, expanding the potential renter pool.
Property crime rates in this neighborhood rank 454th among 516 metro neighborhoods, indicating above-average crime levels that warrant consideration in tenant screening and property management planning. However, the area has shown improvement with property crime declining 46.9% year-over-year, ranking in the 86th percentile nationally for crime reduction trends.
Violent crime rates are more moderate, with the neighborhood ranking 410th among metro areas. Like property crime, violent offenses have decreased significantly with a 53.2% year-over-year decline, placing the area in the 87th percentile nationally for violent crime improvement.
The property benefits from proximity to major corporate employers including Pacific Life headquarters and technology companies, supporting workforce housing demand in the Orange County market.
- Pacific Life — insurance headquarters (3.5 miles) — HQ
- Prudential — financial services (5.3 miles)
- Western Digital — technology headquarters (5.5 miles) — HQ
- First American Financial Corporation — financial services (5.6 miles)
- Microsoft Technology Center — technology offices (5.7 miles)
This Costa Mesa property offers value-add potential in a high-demand rental market with 97.1% neighborhood occupancy and strong demographic fundamentals. The 1974 construction year presents modernization opportunities to capture higher rents in an area where median contract rents have grown 25.8% over five years. Commercial real estate analysis from WDSuite indicates the neighborhood generates above-average NOI per unit, ranking in the 86th percentile nationally.
The investment case is strengthened by projected household growth of 31.3% through 2028 and median income growth to $170,186, expanding the tenant base while high homeownership costs maintain rental demand. Proximity to major employers including Pacific Life headquarters and technology companies supports workforce housing demand in this urban core location.
- Strong occupancy fundamentals with 97.1% neighborhood rate and 80.6% rental tenure
- Value-add opportunity through modernization of 1974-vintage units
- Projected 31.3% household growth and rising incomes through 2028
- High homeownership costs reinforce rental market demand
- Risk consideration: Above-average crime levels require active property management