San Fernando Warehouse Investment
For Sale
$6,120,000
651 Arroyo Ave, San Fernando, CA 91340
Craft Tech 23,660 SF Industrial Building For Sale
Property Size23,660 SF
Lot Size0.79 Acres
Price / SF$258.66
Days on Market574
Property Features for 651 Arroyo Ave
General Information
Standard status
Active
Property type
Other industrial properties, Warehouses, Industrial live-work properties, Industrial properties, Mixed-use properties
Size
23,660 SF
Net Rentable
23,660 SF
Class
C
Elevators
N/A
Lot size
0.79 Acres
Building Details
Year Built
1947
Year Renovated
2024
Buildings
1
Stories
1
Listing Agency:
(310) 909-2381
Listed By:
Christian
(310) 909-2381
Added: Jan 30, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This 23,660-square-foot industrial building is located in San Fernando, CA, on a 0.79-acre lot. The multi-tenant warehouse features a 22-foot clear height, five grade-level loading doors, and 1200-amp three-phase power. The property includes a fully concrete paved and gated yard. Fully leased through 2028, the property offers immediate cash flow. Located outside the City of Los Angeles, the building is exempt from Measure ULA. Situated within the East San Fernando Valley submarket, the location benefits from a low 3.6% vacancy rate (Q4 2024). Rent growth has recently moderated to 1.3%, but the area's long-term growth trajectory remains strong, supported by double-digit growth over the past five years. The limited new supply in this submarket contributes to stable rents, which can reach up to $30 per square foot for smaller spaces, with larger spaces typically ranging from the high teens to $20 per square foot.
Key Highlights
- » 23,660‑Square‑Foot Fully Occupied Two‑Tenant Warehouse Situated on 0.79 Acres
- » Newly Executed (3) Three‑Year Leases with Ability to Extend Lease Terms During Escrow
- » Metal and Stucco Construction Featuring 22’ Clear Height, Five (5) Ground‑Level Doors, and 1,200 Amps
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$479,115
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.83%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$9,582,300
$9.6M
Cap Rate 7%
$6,844,500
$6.8M
Cap Rate 9%
$5,323,500
$5.3M
Market Conditions
NOI Build-Up for 23,660 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$851.8K $36.00/SF
− Vacancy
−$85.2K −$3.60/SF
EGI
$766.6K $32.40/SF
− OpEx
−$287.5K −$12.15/SF
NOI
$479.1K $20.25/SF
Area
Los Angeles County, CA
Vacancy
10.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
37.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$9,582,300
Cap Rate 7%
$6,844,500
Cap Rate 9%
$5,323,500
Alternative Uses
Best Use
Mixed Use
$6.84M
$5.99M – $7.99M
NOI $479,115 @ 7.0% cap · market cap 7.83%
Second Best
Warehouse
$4.40M
$3.85M – $5.13M
NOI $307,862 @ 7.0% cap · market cap 5.03%
Theoretical Best
Office A
$12.67M
$11.08M – $14.78M
NOI $886,723 @ 7.0% cap · market cap 14.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,245
Businesses Nearby
Explore this area
Business Placement
Demographics for 91340, CA
34,610
Population
9,011
Households
3.8
Avg Household Size
35
Median Age
14%
College-Educated
64%
High-School Grad
3.4 sq mi
ZIP Area
10,179
Density / Sq Mi
$79,124
Median Household Income
$37,193
Median Earnings
$1,740
Median Rent
$624,900
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Craft Tech 23,660 SF Industrial Building For Sale
Where is this industrial property located?
The property is located at 651 Arroyo Ave San Fernando, CA.
What is the asking price?
The asking price for this property is $6,120,000.
What are key features of this property?
This property features: » 23,660‑Square‑Foot Fully Occupied Two‑Tenant Warehouse Situated on 0.79 Acres; » Newly Executed (3) Three‑Year Leases with Ability to Extend Lease Terms During Escrow; » Metal and Stucco Construction Featuring 22’ Clear Height, Five (5) Ground‑Level Doors, and 1,200 Amps
