Torrance Retail Asset with
For Sale
$1,228,000
1635 W Carson St, Torrance, CA 90503
Retail asset with owner/user flexibility and value-add investment potential.
Property Size3,760 SF
Price / SF$326.60
Days on Market146
Property Features for 1635 W Carson St
General Information
Standard status
Active
Size
3,760 SF
Property subtype
Vacant-User
Amenities
Owner/User or Investment Opportunity
Mixed Use Income Potential (Retail + Residential Units)
Prime Carson Street Location with Strong Visibility
Building Details
Building Size
3,760 SF
Year Built
1946
Listing Agency:
Marcus & Millichap - South Bay
(424) 405-3931
Listed By:
Roxanne Faire · License #License(s): CA: CA02327188
(424) 405-3931
Source:
Marcusmillichap
Added: Apr 8
Changed: Aug 8
Last Checked: Aug 31 at 12:59PM
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 Marcus & Millichap - South Bay
Investment Insights
Based on property information with market context.
The property at 1635 W Carson Street in Torrance presents an opportunity to acquire a retail asset in a strategic location. The property is positioned along a highly trafficked corridor near major medical and employment centers, offering visibility, accessibility, and long-term demand drivers. The asset is suited for an owner/user seeking to establish or expand operations, particularly within restaurant, medical, or service-oriented uses. The property offers income-producing potential through a combination of commercial space and residential units located at the rear of the parcel, creating a diversified revenue stream. The front building previously operated as a restaurant and experienced a fire that impacted a significant portion of the kitchen, office, and main dining area. The rear portion of the structure, including restrooms, hallway, and storage areas, remains intact and unaffected. An investor or owner/user can capitalize on leasing upside, given indications that current and prior rents in the area may be below market levels. The property offers a combination of location, flexible use potential, existing residential income, and a defined value-add component.
Key Highlights
- Strategic location on a high‑traffic corridor near major medical and employment centers, offering strong visibility and accessibility.
- Value‑add investment potential through restoration of the front building (previously a restaurant impacted by fire).
- Income‑producing potential with existing residential units at the rear of the parcel.
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
$95,041
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
7.74%
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%
$1,900,820
$1.9M
Cap Rate 7%
$1,357,729
$1.4M
Cap Rate 9%
$1,056,011
$1.1M
Market Conditions
NOI Build-Up for 3,760 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
$139.0K $36.96/SF
− Vacancy
−$3.2K −$0.85/SF
EGI
$135.8K $36.11/SF
− OpEx
−$40.7K −$10.83/SF
NOI
$95.0K $25.28/SF
Area
Torrance, CA
Vacancy
2.30%
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%
$1,900,820
Cap Rate 7%
$1,357,729
Cap Rate 9%
$1,056,011
Alternative Uses
Best Use
Retail
$1.36M
$1.19M – $1.58M
NOI $95,041 @ 7.0% cap · market cap 7.74%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$76.18M
$66.65M – $88.87M
NOI $5,332,274 @ 7.0% cap · market cap 434.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,202
Businesses Nearby
222k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 30%
Dining 28%
Groceries 24%
Home Improvements & Furnishings 17%
Ralphs
Groceries
53,847 visits/mo
0.3 miles
Lowe's
Home Improvements & Furnishings
37,833 visits/mo
0.5 miles
McDonald's
Dining
34,879 visits/mo
0.2 miles
Daiso USA
Shops & Services
21,665 visits/mo
0.2 miles
ARCO
Shops & Services
15,043 visits/mo
0.0 miles
Demographics for 90503, CA
45,386
Population
18,189
Households
2.5
Avg Household Size
42
Median Age
55%
College-Educated
96%
High-School Grad
5.3 sq mi
ZIP Area
8,563
Density / Sq Mi
$119,685
Median Household Income
$71,848
Median Earnings
$2,249
Median Rent
$1,058,100
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Retail asset with owner/user flexibility and value-add investment potential.
Where is this storefront property located?
The property is located at 1635 W Carson St Torrance, CA.
What is the asking price?
The asking price for this property is $1,228,000.
What are key features of this property?
This property features: Strategic location on a high‑traffic corridor near major medical and employment centers, offering strong visibility and accessibility.; Value‑add investment potential through restoration of the front building (previously a restaurant impacted by fire).; Income‑producing potential with existing residential units at the rear of the parcel.
