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    405 Towne Ave Los Angeles, CA 90013

    Sponsored
    For Sale
    $7,000,000

    Downtown LA industrial building, fully renovated, lease-option.

    Property size:
    16,500 SF

    Property Features for 405 Towne Ave

    General Information

    Sale Condition
    lease-option
    Property type
    Other industrial properties
    Square Feet
    16,500 SF
    Price / Square Foot
    $424
    Class
    C
    Elevators
    N/A
    Lot Size
    5,663 SF

    Building Details

    Year Built
    1925

    Overview

    Renovated Industrial Building with Studio

    This 16,500 square foot industrial building is located in Los Angeles, CA. The property has been completely renovated and is currently generating $20,000 in monthly income from a single tenant via a lease-option agreement. The building features new electrical, plumbing, and sprinkler systems. The second floor includes new wood flooring, doors, framing, double-pane glass windows, wrought iron accents, and pull-down window shades. There are five offices and two kitchens, one on the ground floor and two on the second floor. A soundproof recording studio includes a large control room, tracking room, and three vocal booths. The studio has a separate power source and could be converted into two large executive offices. Climate control is provided by seven HVAC units, including two large and two small units on the second floor, plus five in the studio. The ground floor and basement feature polished concrete floors. The building is equipped with two water heaters and two Life Source water purification systems. Power is supplied by new uninterrupted power from the street, with five 50-amp plugs on the ground floor and five more in the basement. The basement also includes pegs for lighting and rigging. Security is enhanced by Ethernet-powered cameras. Plans for live/work occupancy have been approved, though not yet inspected. The property sits on a 0.13-acre lot.

    We can help!

    Listing Contact
    Sion Khakshour

    Learn more

    Property Insight Report

    HighLights

    • Completely renovated 16,500 sq ft Los Angeles industrial building.
    • Features five second‑floor offices, two kitchens, and a soundproof recording studio.
    • $20,000 monthly income from a single tenant; live/work occupancy plans approved.
    Property Profile Insight Report Location Intelligence

    Current Use by Public Records

    Industrial properties

    Suggested Use

    Real Estate Agency Spa & Massage Center Dental Office Hair Salon Restaurant Nail Salon Daycare Center Building Supply Gym & Fitness Center Auto Repair Shop

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Los Angeles
    State
    California
    Longitude
    -118.241095
    Latitude
    34.044345

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    FAQs

    What type of property is this?
    Industrial property - Downtown LA industrial building, fully renovated, lease-option.
    Where is this industrial property located?
    The property is located at 405 Towne Ave Los Angeles, CA.
    What is the asking price?
    The asking price for this property is $7,000,000.
    What are key features of this property?
    This property features: Completely renovated 16,500 sq ft Los Angeles industrial building.; Features five second-floor offices, two kitchens, and a soundproof recording studio.; $20,000 monthly income from a single tenant; live/work occupancy plans approved.
    (213) 210-7492
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    405 Towne Ave Los Angeles, CA 90013
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    405 Towne Ave Los Angeles, CA 90013
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    We can help!
    Listing Contact
    Sion Khakshour
    (213) 210-7492
    Learn more
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