2318 16th St · Santa Monica, CA 90405

$4,950,000

33 bd · 29.7 ba · 17,671 sqft · MultiFamily public records · 21 Days on market

Built 1977 0.44 ac lot

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Why this score? — see what drove the B+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +8.1/10.0
• ARV discount +7.5/15.0
• Appreciation +7.5/10.0
• Schools +6.2/10.0
• Livability +3.6/5.0
• Rent growth +2.8/5.0
• Condition / age +2.5/5.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 11 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

Offered as part of a rare six-property portfolio, 2318 16th Street, Santa Monica, CA 90405 presents an outstanding opportunity to acquire a larger-scale, low-density asset with highly desirable unit sizes in one of the Westside's most sought-after coastal neighborhoods. Built in 1977 by the Seller's family, the property reflects long-term pride of ownership and offers investors the ability to establish a meaningful rental footprint in prime Sunset Park. The property consists of 15 exceptionally large units, featuring a dynamic and extremely rare unit mix comprised of 12 two bedroom/two-bath units and 3 three-bedroom/two-bath units. This concentration of larger floor plans is highly sought a

Key facts

• 0.44 acre lot
• 28 parking spots
• Built 1977

Tags

• GENEROUSLY SIZED KITCHENS
• PROXIMITY TO THE BEACH
• IMMEDIATE ACCESS TO THE OCEAN
• WALKABLE LIFESTYLE AMENITIES

Property features AI

Finance

• Other: One building on the parcel; Unit mix includes three 3-bedroom like-units and twelve 2-bedroom like-units; Example rents: 3-bed unit rent $2,480 (actual $7,441 aggregated), 2-bed unit rent $2,181 (actual $26,169 aggregated)
• Financial info: Gross income reported at 403,322; Gross operating income reported at $406,322; Net operating income reported at $267,164; Total annual expenses reported at $127,058; Cap rate reported at 5.4; Gross rent multiplier reported at 12.18; Reported vacancy rate 0%; Income reported as Actual
• HOA & community: 15 units in the complex

Exterior

• Parking: Assigned gated garage parking; Total of 28 parking spaces
• Security: Gated parking
• Home design: Residential income property; Two floors total; One level unit configuration
• Construction: SMR2* zoning
• Exterior features: No other structures on site; Prime Sunset Park location, north of Ocean Park Blvd

Interior

• Kitchen: Dishwasher; Microwave; Range/Oven; Refrigerator
• Bedrooms: Three-bedroom units (multiple units); Two-bedroom units (multiple units)
• Bathrooms: Two bathrooms in listed unit types
• Heating & cooling: Wall heat; Wall/window cooling units
• Interior features: Built-ins; As-is disclosures
• Laundry & utility: Wall/Window unit cooling; Wall heat

What this means for you Summary

Snapshot

• This is a 11 × 3-bed/2.7-bath units multifamily listed at $4.95M.

Deal economics

• At list price, monthly cash flow is $21k ($257k/yr) — positive. Per door: $2k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($65k rent vs $4.95M).
• Recommended offer: $4.88M (1.5% below list) — sets the bar for market timing.
• Cap rate 11.5% vs local median 1.2% in Santa Monica — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 72/100 on livability (#178 in CA) — a middle-class / working-renter tenant base. Strengths: schools A+, amenities A+, commute A+; Watch: health & safety C-, crime F, cost of living F.
• Santa Monica-Malibu Unified (urban): math 61% / reading 74% proficiency, ranked #123 of 1,400 in CA (top 9%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: Rents rising (+1.1%/yr); 100 active listings in the ZIP; high-income renter base; 19,697 units permitted in Los Angeles County in 2024 (9,426 in 5+ unit buildings).
• At $64,789/mo this rent would consume 641% of the median local household income ($121k/yr) (locally 2402% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• In year one you build about $280k of equity ($34k loan paydown + $246k appreciation (5.0% local appreciation)).
• Los Angeles County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (5.0% appreciation + 1.1% rent growth), your $1.39M cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$449k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Negotiation context

• It's been on market 21 days — a 2% lower offer ($4.88M) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $4,875,750 (1.5% below list)

Questions for the listing agent

1. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
2. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
3. Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
6. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
7. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
8. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
9. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.31% ✓
• Cap rate: 11.49%
• Cash-on-cash: 18.57%
• DSCR: 1.83
• GRM: 6.4

CMA / ARV

No comps found within radius.

Projected returns pro-forma

4.97% appreciation · 1.05% rent growth · sell at horizon

5-year hold

• IRR: 27.7%
• Equity multiple: 2.71×
• Total profit: $2,371,001
• Equity at exit: $2,794,790

10-year hold

• IRR: 25.8%
• Equity multiple: 5.16×
• Total profit: $5,764,876
• Equity at exit: $4,814,923

Cash invested: $1,386,000 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 18 Strongly Tenant-Friendly
• State California: 18 Strongly Tenant-Friendly · D+13
• County: — inherits STATE
• City: — inherits STATE

AB1482 statewide rent cap (10% + CPI). Cities (SF/LA/Berkeley) layer stricter rules. Just-cause statewide.

Methodology + full state rankings →

ZIP-level market 90405

• Home prices YoY: 1.2%
• Rents YoY: 1.1%
• Active inventory: 100
• Price-to-rent: 70.0×

Monthly cashflow live

• Estimated rent: $64,789 high
• Mortgage (P&I): −$25,958
• Tax from tax record: −$1,711 /mo · $20,531/yr
• Insurance: −$2,062
• HOA: −$0
• Vacancy / Maint / Mgmt: −$13,606
• Net cashflow: $21,452

Break-even live

Break-even rent $37,635

Max offer price $4,950,000

Occupancy floor 62%

11-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 11× units	3	2.7	$64,790
Total (11 units)			$64,789

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $1,237,500
• Closing costs: $148,500
• Reserves months: —
• Total cash needed: —

Listing history 15 events

1. 2026-06-17
   status $4,950,000 Pending 21 DOM
2. 2026-06-17
   days on market $4,950,000 Active 21 DOM
3. 2026-06-16
   days on market $4,950,000 Active 20 DOM
4. 2026-06-15
   days on market $4,950,000 Active 19 DOM
5. 2026-06-13
   days on market $4,950,000 Active 17 DOM
6. 2026-06-13
   days on market $4,950,000 Active 16 DOM
7. 2026-06-09
   days on market $4,950,000 Active 13 DOM
8. 2026-06-08
   days on market $4,950,000 Active 12 DOM
9. 2026-06-07
   days on market $4,950,000 Active 11 DOM
10. 2026-06-04
    days on market $4,950,000 Active 8 DOM
11. 2026-06-03
    days on market $4,950,000 Active 7 DOM
12. 2026-06-02
    days on market $4,950,000 Active 6 DOM
13. 2026-06-01
    days on market $4,950,000 Active 5 DOM
14. 2026-05-31
    days on market $4,950,000 Active 4 DOM
15. 2026-05-27
    listed $4,950,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast CA · Resets to sale price

• Current annual tax: $20,531 · $1,711/mo
• Projected year-2 tax: $37,620 · $3,135/mo
• Expected delta: +$17,089/yr (+$1,424/mo · 83.2%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 6/10 Major 7 d/yr ≥83°F today · 20 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 4/10 Moderate 5 unhealthy d/yr today · 6 by 30 yrs out

Taxation est. · year 1

• Rental income: $777,468
• − Mortgage interest: −$277,277
• − Property taxes: −$20,531
• − Insurance: −$24,750
• − Repairs & maintenance: −$62,197
• − Management: −$62,197
• − Depreciation: −$144,000
• Taxable income: $186,515
• Est. tax owed @ 24.0%: −$44,764
• After-tax cash flow: $212,655/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Santa Monica-Malibu Unified
• NCES district ID: 0635700
• Math proficiency: 61% ▬ 0.00%
• Reading proficiency: 74% ▬ 0.00%
• Median HH income: $81,489
• Composite: 61.58/100
• National rank: #1535
• State rank: #123 of 1400 in CA

Livability — Santa Monica

• Score: 72/100
• State rank: #178
• US rank: #5878

Category grades

Amenities A+ Commute A+ Cost of living F Crime F Employment A+ Housing B- Health & safety C- User ratings C+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Santa Monica, CA
• County: Los Angeles County · 9,444,647 people
• City population: 93,581
• Metro: Los Angeles-Long Beach-Anaheim, CA
• Population (ZIP): 27,298
• Household income: $121,241
• Rent vs Own: 68.6% rent · 31.4% own
• Severe rent burden: 2402.0

Population outlook (Los Angeles County) Hauer SSP2

• Today (2025): 10,940,515 people
• By 2030: 11,256,481 · +2.9%
• By 2040: 11,729,929 · +7.2%
• By 2050: 11,948,407 · +9.2%
• By 2075: 11,818,114 · +8.0%
• By 2100: 10,842,928 · -0.9%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (66%)
• Race & ethnicity: White 66% Hispanic / Latino 15% Two or more races 12% Asian 8% Black 4%
• Hispanic origin (detail): Mexican 9%
• Common ancestry: Romanian 5% Italian 4% Scotch-Irish 4%
• Foreign-born: 22% · Canada, China, Dominican Republic
• Languages at home: 73% English-only · Spanish 10% Other Indo-European 5% Other Asian/Pacific 3%

Political lean MEDSL · Los Angeles

• 2024 margin: Solid D (+32.9) · D 64.8% · R 31.9% · Other 3.3%
• 2008→2024 swing: -7.4pp toward R · 2008: 40.4pp · 2024: 32.9pp
• All cycles: 2024: D+32.9 2020: D+44.2 2016: D+48.0 2012: D+40.0 2008: D+40.4

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▲ 4.97%
• Current HPI: 434.8689
• Rent YoY: ▲ 1.05%
• Metro: Los Angeles-Long Beach-Anaheim, CA
• State GDP YoY: ▲ 3.21%
• F500 in state: 116

Industry mix (Fortune 500 HQ in CA)

Industry	F500 HQs	Revenue
▸Technology	27	$1,492B
▸Financial Services	3	$174B
▸Retail	3	$44B
▸Insurance	3	$26B
▸Media / Entertainment	2	$115B
▸Pharmaceuticals / Biotech	2	$62B

Price history

1 event — show timeline

• 2026-05-27 Listed $4,950,000 TheMLS

Property tax history

+2.3%/yr

Latest (2025): $20,531 · +6.9% YoY. Source: county tax records.