Off Market Investment Opportunity – Passive RCFE Real Estate with ADU Income
22901 Meyler Ave., Torrance, California
Rare opportunity to acquire a stabilized, income-producing healthcare real estate investment with two independent rental income streams.
Property Overview
The property consists of:
- Main RCFE Facility (1,781 sq. ft.): Licensed for 6 residents and leased to an independent Residential Care Facility for the Elderly (RCFE) operator, generating $9,270 per month ($111,240 annually).
- Detached ADU (500 sq. ft.): Separately leased, generating $3,100 per month ($37,200 annually).
Combined Gross Rental Income:
$12,370 per month
$148,440 annually
Passive Investment Structure
The RCFE business is operated entirely by the tenant under its own RCFE license. The seller acts strictly as the property owner and landlord, with no involvement in:
- Resident care
- Staffing and payroll
- Daily operations
- Licensing compliance
- Business management
The RCFE license is issued specifically for this property and address. If the tenant were to relocate, a new licensing and approval process would generally be required for a different location. As a result, the current tenant has expressed a long-term commitment to operating at this property and intends to remain for the next 20 to 30 years, subject to future lease agreements and business conditions.
This structure provides investors with a passive real estate investment while the tenant assumes responsibility for operating the licensed care facility.
Lease Highlights
- Remaining Lease Term: 4 Years
- Annual Rent Increases: 3%
- Lease Structure: Modified Gross
- Tenant Pays All Utilities
- Stable, long-term income with built-in annual growth
Investment Highlights
- Licensed 6-bed RCFE facility (1,781 sq. ft.)
- 500 sq. ft. detached ADU providing additional rental income. Leased separately
- Tenant-operated RCFE under a separate state license
- RCFE license is tied to this property, creating a strong incentive for long-term occupancy
- Passive landlord ownership with limited operational liability
- Two independent income streams (RCFE + ADU)
- Strong monthly cash flow of $12,370
- $148,440 annual gross rental income
- Built-in 3% annual rent escalations
- Healthcare real estate investment with predictable income
- Attractive long-term appreciation potential
Valuation
Based on the current annual rental income of $148,440 and a 6.0% capitalization rate, the indicated property value is:
Approximately $2,474,000
Offering Summary
This is an exceptional opportunity to acquire a stabilized healthcare real estate investment with predictable cash flow, annual rent growth, and a true passive ownership structure. The tenant operates the licensed 6-bed RCFE independently under its own RCFE license, allowing the owner to function solely as the landlord while benefiting from long-term contractual rental income. Because the RCFE license is specific to this property, the tenant has a significant incentive to continue operating at this location, supporting long-term occupancy and income stability. The property offers 2,281 square feet of rentable improvements (1,781 sq. ft. RCFE + 500 sq. ft. ADU), diversified income streams, and minimal day-to-day management responsibilities.
Contact Information:
For further details or to arrange a viewing, please reach out to:
Phone: +1 (415) 225-8181 Dmitry
Seize this unique chance to own a distinguished assisted living facility in the heart of Torrance, California.