Income-Producing Restaurant Investment
For Sale
$1,599,000
13226 Rosecrans, Norwalk, CA 90650
Established restaurant property with income-generating potential on high-traffic avenue.
Property Size5,500 SF
Lot Size0.50 Acres
Days on Market123
Property Features for 13226 Rosecrans
General Information
Standard status
Active
Size
5,500 SF
Lot size
0.50 Acres
Property subtype
Commercial
Building Details
Building Size
5,500 SF
Year Built
1925
Units
3
Listing Agency:
Realty ONE Group Empire
(909) 957-8029
Listed By:
Marisela Herrera · License #01492657
Source:
Elliman
Added: Apr 24
Changed: Aug 14
Last Checked: Aug 23 at 7:48AM
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 Realty ONE Group Empire
Investment Insights
Based on property information with market context.
This investment property features a restaurant and two additional detached buildings, situated on nearly half an acre. The main building, a well-maintained restaurant, is located on the corner of Rosecrans Avenue, offering visibility and accessibility. The two additional detached buildings are currently leased and generating monthly income. The primary building is occupied by a restaurant tenant under a 5-year lease contract at $5,000 per month plus NNN. One of the detached buildings is leased to a business under a five-year lease at $2,500 per month, increasing to $3,000 per month in December, plus NNN. The third tenant maintains a month-to-month agreement at $1,200 per month. The sale includes existing restaurant equipment. The property is located in Norwalk, California. The bike score is 58, indicating it is bikeable. The walk score is 69, indicating it is somewhat walkable. The transit score is 40, indicating some transit options are available.
Key Highlights
- High‑traffic corner location on Rosecrans Avenue provides excellent visibility and accessibility for the main restaurant building.
- Established restaurant property with immediate cash flow from existing tenants.
- Three detached buildings offer diverse income streams and operational potential.
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
$89,286
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
5.58%
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%
$1,785,720
$1.8M
Cap Rate 7%
$1,275,514
$1.3M
Cap Rate 9%
$992,067
$992.1K
Market Conditions
NOI Build-Up for 5,500 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
$128.7K $23.40/SF
− Vacancy
−$9.7K −$1.76/SF
EGI
$119.0K $21.65/SF
− OpEx
−$29.8K −$5.41/SF
NOI
$89.3K $16.23/SF
Area
Norwalk, CA
Vacancy
7.50%
Lease Rate
$23.40 /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%
$1,785,720
Cap Rate 7%
$1,275,514
Cap Rate 9%
$992,067
Alternative Uses
Best Use
Specialty Retail
$1.28M
$1.12M – $1.49M
NOI $89,286 @ 7.0% cap · market cap 5.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.74M
$1.52M – $2.03M
NOI $121,781 @ 7.0% cap · market cap 7.62%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
978
Businesses Nearby
116k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 37%
Shops & Services 33%
Home Improvements & Furnishings 31%
Lowe's
Home Improvements & Furnishings
34,508 visits/mo
0.4 miles
ARCO
Shops & Services
19,155 visits/mo
0.2 miles
Starbucks
Dining
16,638 visits/mo
0.3 miles
Burger King
Dining
8,877 visits/mo
0.2 miles
Circle K
Shops & Services
8,039 visits/mo
0.3 miles
Demographics for 90650, CA
102,891
Population
27,346
Households
3.8
Avg Household Size
37
Median Age
21%
College-Educated
77%
High-School Grad
9.9 sq mi
ZIP Area
10,393
Density / Sq Mi
$98,709
Median Household Income
$42,060
Median Earnings
$2,014
Median Rent
$616,600
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant property with income-generating potential on high-traffic avenue.
Where is this conventional restaurant located?
The property is located at 13226 Rosecrans Norwalk, CA.
What is the asking price?
The asking price for this property is $1,599,000.
What are key features of this property?
This property features: High‑traffic corner location on Rosecrans Avenue provides **excellent visibility and accessibility** for the main restaurant building.; Established restaurant property with immediate cash flow from existing tenants.; Three detached buildings offer diverse income streams and operational potential.
