Retail Building on Historic
For Sale
$1,195,000
Pending
705 S Pacific, San Pedro, CA 90731
Three-unit retail building in San Pedro's PBID district.
Property Size8,500 SF
Lot Size0.21 Acres
Days on Market156
Property Features for 705 S Pacific
General Information
Standard status
Pending
Size
8,500 SF
Lot size
0.21 Acres
Property subtype
Commercial
Building Details
Building Size
8,500 SF
Year Built
1927
Units
3
Listing Agency:
Century 21 Union Realty
(310) 793-3308
Listed By:
Mitch Graves · License #01260315
(310) 793-3308
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:23AM
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 Century 21 Union Realty
Investment Insights
Based on property information with market context.
This three-unit retail building features 90 feet of frontage on historic Pacific Avenue in San Pedro. Situated in the heart of the San Pedro Property Business Initiative District (PBID), the property presents an investment opportunity for rehabilitation, with potential to capitalize on the revitalization of the 6th and 7th Street downtown areas, the Warner Grand Theatre, the new West Harbor waterfront development, and multiple new high-end apartment units. The current configuration includes an approximately 1650-square-foot barber shop, an approximately 2300-square-foot pawn shop, and an approximately 4550-square-foot secondhand store with an arcade entrance that could be divided into two separate units. All units are under month-to-month NNN leases, offering potential for increased rental income upon rehabilitation.
Key Highlights
- Prime location on historic Pacific Ave in San Pedro with 90ft of frontage.
- Located in the San Pedro Property Business Initiative District (PBID).
- Excellent investment opportunity for rehabilitation with potential for high rent increases.
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
$105,593
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
8.84%
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%
$2,111,860
$2.1M
Cap Rate 7%
$1,508,471
$1.5M
Cap Rate 9%
$1,173,256
$1.2M
Market Conditions
NOI Build-Up for 4,550 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
$168.2K $36.96/SF
− Vacancy
−$17.3K −$3.81/SF
EGI
$150.8K $33.15/SF
− OpEx
−$45.3K −$9.95/SF
NOI
$105.6K $23.21/SF
Area
Los Angeles, CA
Vacancy
10.30%
Lease Rate
$36.96 /SF/Yr
Expense Ratio
30.00%
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%
$2,111,860
Cap Rate 7%
$1,508,471
Cap Rate 9%
$1,173,256
Alternative Uses
Best Use
Retail
$1.51M
$1.32M – $1.76M
NOI $105,593 @ 7.0% cap · market cap 8.84%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$92.18M
$80.66M – $107.54M
NOI $6,452,619 @ 7.0% cap · market cap 539.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,158
Businesses Nearby
189k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 52%
Dining 23%
Groceries 22%
Home Improvements & Furnishings 2%
VONS
Groceries
41,399 visits/mo
0.4 miles
Starbucks
Dining
22,498 visits/mo
0.5 miles
Dollar Tree
Shops & Services
19,089 visits/mo
0.1 miles
Dollar Tree
Shops & Services
16,454 visits/mo
0.4 miles
Chase Bank
Shops & Services
14,596 visits/mo
0.3 miles
Demographics for 90731, CA
61,270
Population
24,477
Households
2.5
Avg Household Size
38
Median Age
25%
College-Educated
81%
High-School Grad
9.3 sq mi
ZIP Area
6,588
Density / Sq Mi
$71,936
Median Household Income
$41,324
Median Earnings
$1,645
Median Rent
$808,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Storefront property - Three-unit retail building in San Pedro's PBID district.
Where is this storefront property located?
The property is located at 705 S Pacific San Pedro, CA.
What is the asking price?
The asking price for this property is $1,195,000.
What are key features of this property?
This property features: Prime location on historic Pacific Ave in San Pedro with 90ft of frontage.; Located in the San Pedro Property Business Initiative District (PBID).; Excellent investment opportunity for rehabilitation with potential for high rent increases.
