Two Freestanding Flex/Industrial
For Sale
$7,950,000
23840-23870 Madison Street, Torrance, CA 90505
Two flex/industrial buildings with office and warehouse space for sale.
Property Size26,523 SF
Price / SF$283.93
Days on Market156
Property Features for 23840-23870 Madison Street
General Information
Standard status
Active
Size
26,523 SF
Property subtype
Flex/R&D
Building Details
Building Size
26,523 SF
Listing Agency:
(310) 329-9000
Listed By:
Warren Noack · License #CalDRE #00521511
Source:
Klabin
Added: Mar 5
Changed: Aug 8
Last Checked: Aug 8 at 6:12AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Warren Noack
Investment Insights
Based on property information with market context.
Two freestanding flex/industrial buildings are available for sale on Madison Street near Skypark Drive. Building A offers 17,407 square feet, including 12,386 square feet of two-story office space and 5,021 square feet of warehouse space. Building B provides 10,584 square feet, featuring 7,884 square feet of warehouse space and 2,700 square feet of two-story office space. Building B also includes six ground-level doors and direct warehouse access to Torrance Airport via four ground-level doors. The property benefits from heavy power and a premier location adjacent to the airport. There are 52 parking spaces available in the lot to the north, owned by the city.
Key Highlights
- Airport adjacent with direct access to Torrance Airport via 4 ground level doors
- Two freestanding flex/industrial buildings
- Heavy power available
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
$642,600
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
8.08%
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%
$12,852,000
$12.9M
Cap Rate 7%
$9,180,000
$9.2M
Cap Rate 9%
$7,140,000
$7.1M
Market Conditions
NOI Build-Up for 28,000 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
$1.01M $36.00/SF
− Vacancy
−$151.2K −$5.40/SF
EGI
$856.8K $30.60/SF
− OpEx
−$214.2K −$7.65/SF
NOI
$642.6K $22.95/SF
Area
Torrance, CA
Vacancy
15.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
25.00%
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%
$12,852,000
Cap Rate 7%
$9,180,000
Cap Rate 9%
$7,140,000
Alternative Uses
Best Use
Office B
$9.18M
$8.03M – $10.71M
NOI $642,600 @ 7.0% cap · market cap 8.08%
Second Best
Warehouse
$6.03M
$5.28M – $7.04M
NOI $422,368 @ 7.0% cap · market cap 5.31%
Theoretical Best
Multifamily LT 5
$567.26M
$496.36M – $661.81M
NOI $39,708,423 @ 7.0% cap · market cap 499.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,999
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 90505, CA
36,643
Population
15,202
Households
2.4
Avg Household Size
45
Median Age
59%
College-Educated
97%
High-School Grad
5.9 sq mi
ZIP Area
6,211
Density / Sq Mi
$110,690
Median Household Income
$70,100
Median Earnings
$2,338
Median Rent
$1,144,000
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Sterling Catering Co — Torrance, CA 90505
Frequently Asked Questions
What type of property is this?
Flex space - Two flex/industrial buildings with office and warehouse space for sale.
Where is this flex space located?
The property is located at 23840-23870 Madison Street Torrance, CA.
What is the asking price?
The asking price for this property is $7,950,000.
What are key features of this property?
This property features: Airport adjacent with direct access to Torrance Airport via 4 ground level doors; Two freestanding flex/industrial buildings; Heavy power available
