Sapphire Crest | 7 Units | ±6.38% Cash-on-Cash Return

Highlights:

• Strong In-Place Cash Flow & Day-One Returns: Approximately $177,648 in scheduled gross annual income with a ±6.80% cap rate and ±6.38% cash-on-cash return under prevailing financing assumptions.
• Compelling Value Metrics: ±9.29 GRM and a competitive price per unit relative to replacement cost, supporting attractive basis and downside protection.
• Efficient Leverage Profile: Underwritten loan scenarios supporting approximately ~1.20x debt coverage, enhancing cash flow stability and financing flexibility.
• Turnkey Capital Position: Comprehensive 2023 renovation and upgraded electrical systems (2024) materially reduce near-term capital expenditure risk.
• Defined Upside Optionality: Architectural drawings completed for a potential ±760 SF two-bedroom, two-bath ADU (not built; property conveyed with plans only), offering a clear pathway for future income growth.
• Expense Control & Operational Efficiency: Separately metered gas and electricity reduce owner-paid utilities, supporting long-term margin preservation.
• Balanced, High-Demand Unit Mix: Combination of one-bedroom, two-bedroom, and townhouse-style units supporting broad renter appeal and diversified income.
• Operational Amenities: On-site laundry facilities and garage parking for seven vehicles enhance tenant retention and ancillary income.
• Section 8 Rent Durability: HACLA payment standards in the subject ZIP code support income stability, including approximately $2,041 for 1-bedroom units and $2,289 for 2-bedroom units.
• Employment-Driven Rental Market: Wilmington’s proximity to the Ports of Los Angeles and Long Beach and related logistics and industrial employment supports consistent housing demand.
• Established Coastal Submarket: Limited new multifamily supply in established residential pockets supports occupancy stability and income durability.
• Proximity to Major Ports: Approximately 6.5 miles to the Port of Los Angeles and 8 miles to the Port of Long Beach, anchoring long-term economic activity.
• Regional Freeway Connectivity: Convenient access to the I-110 and I-710 Freeways, supporting commuter and employment accessibility throughout the Harbor Area and South Bay.

Description:

Lucrum Real Estate Group is pleased to present Sapphire Crest, a fully renovated, seven-unit multifamily investment opportunity located at 823 Lagoon Avenue in Wilmington, California. This two-story, garden-style asset encompasses approximately ±5,301 square feet on a ±7,512-square-foot LARD1.5-zoned lot, offering investors a compelling combination of stabilized income, strong value metrics, and reduced operational risk.

Sapphire Crest is currently operating with stabilized in-place rents, generating approximately $177,648 in scheduled gross annual income and delivering an attractive current ±6.80% cap rate with a ±6.38% cash-on-cash return under prevailing financing assumptions. At a competitive ±9.29 GRM and favorable price per unit relative to replacement cost, the property supports efficient leverage scenarios while providing immediate day-one cash flow and predictable yield.

Originally constructed in 1965, the property underwent a comprehensive renovation in 2023, including fully remodeled interiors, a new roof, new windows, drought-tolerant landscaping, and a freshly painted exterior. In May 2024, all electrical subpanels were replaced, materially strengthening core building systems and minimizing near-term capital expenditure exposure for future ownership. Wilmington’s employment-driven rental base and proximity to major ports and logistics corridors support consistent demand, enhancing income stability and downside protection for long-term investors. Units feature modern finishes, updated kitchens and bathrooms, new flooring, wall air conditioning, and ample cabinet and storage space, positioning the asset at the top of its competitive set within the submarket.

From an operational standpoint, the property benefits from separately metered gas and electricity, on-site laundry facilities, and garage parking for seven vehicles, supporting expense control, tenant retention, and long-term income durability. In addition to stabilized operations, the asset includes architectural drawings for a potential ±760-square-foot two-bedroom, two-bath ADU, offering a clearly defined pathway for future income growth without altering existing operations, subject to buyer verification and local approvals. With major capital improvements completed and diversified income across seven units, Sapphire Crest represents a turnkey, low-maintenance acquisition well-suited for investors seeking reliable cash flow with optional long-term upside.

Sapphire Crest is located within an established residential pocket of Wilmington in Los Angeles County, offering convenient access to major employment centers, coastal cities, and regional transportation corridors. The property benefits from proximity to Long Beach, San Pedro, Carson, Torrance, and Lakewood, supporting broad tenant demand across multiple employment bases.

The property offers efficient access to the 110 and 1 Freeways, enabling connectivity throughout the South Bay and greater Los Angeles region. Long Beach Harbor and the Queen Mary are approximately a 15-minute drive, while nearby anchors such as Los Angeles Harbor College and Ken Malloy Harbor Regional Park further support neighborhood stability and livability.

The immediate area provides strong walkability and bike accessibility, with nearby retail, dining, and daily-needs services contributing to the property’s high Walk and Bike Scores. This combination of residential character, accessibility, and regional connectivity reinforces Sapphire Crest’s position as a durable, long-term rental asset within a supply-constrained coastal submarket.