Two-Tenant Building on Corner
For Sale
$600,000
1861 E 62nd, Los Angeles, CA 90001
Two-tenant building on a corner lot with parking.
Property Size2,216 SF
Lot Size0.15 Acres
Price / SF$270.76
Days on Market140
Property Features for 1861 E 62nd
General Information
Standard status
Active
Size
2,216 SF
Lot size
0.15 Acres
Property subtype
CommercialSale
Listing Agency:
CENTURY 21 REALTY MASTERS
(323) 722-7700
Listed By:
"NINO" CEFERINO ZEPEDA · License #01880762
(323) 485-4518
Source:
Realtyrightchoice
Added: Apr 24
Changed: Sep 8
Last Checked: Sep 9 at 10:47AM
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 REALTY MASTERS
Investment Insights
Based on property information with market context.
This two-tenant building is located at 1861 E 62nd St, situated between Slauson and Gage Ave. The corner lot property is currently occupied by an RV manufacturer and a lunch truck manufacturer. The property includes office spaces. The rear tenant is a wrought iron shop. Storage areas are available. The property has parking for clients' vehicles. Constructed in 1914, the one-story building has a Class C rating. The building size is 2,216 square feet, situated on a 6,708 square foot lot. The property has 51 feet of frontage on 62nd Street. The property is 100% leased. The zoning is LCM3*, supporting commercial, office, and residential mixed uses. The property has a Walk Score of 95, indicating it is a Walker's Paradise, a Bike Score of 58, indicating it is Bikeable, and a Transit Score of 60, indicating Good Transit.
Key Highlights
- High Walk Score (95): Situated in a "Walker's Paradise," indicating excellent walkability and access to amenities.
- Fully Leased Investment Property: Currently 100% leased, providing immediate income for investors.
- Strategic Corner Lot Location: Located on a corner lot between Slauson and Gage Ave, benefiting from high traffic volume and exposure.
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
$44,874
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
7.48%
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%
$897,480
$897.5K
Cap Rate 7%
$641,057
$641.1K
Cap Rate 9%
$498,600
$498.6K
Market Conditions
NOI Build-Up for 2,216 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
$79.8K $36.00/SF
− Vacancy
−$8.0K −$3.60/SF
EGI
$71.8K $32.40/SF
− OpEx
−$26.9K −$12.15/SF
NOI
$44.9K $20.25/SF
Area
Los Angeles, 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%
$897,480
Cap Rate 7%
$641,057
Cap Rate 9%
$498,600
Alternative Uses
Best Use
Mixed Use
$641.1K
$560.9K – $747.9K
NOI $44,874 @ 7.0% cap · market cap 7.48%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$44.89M
$39.28M – $52.38M
NOI $3,142,638 @ 7.0% cap · market cap 523.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,535
Businesses Nearby
Explore this area
Business Placement
Demographics for 90001, CA
55,859
Population
13,998
Households
4
Avg Household Size
30
Median Age
7%
College-Educated
49%
High-School Grad
3.3 sq mi
ZIP Area
16,927
Density / Sq Mi
$60,751
Median Household Income
$30,672
Median Earnings
$1,471
Median Rent
$513,300
Median Home Value
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-tenant building on a corner lot with parking.
Where is this mixed-use property located?
The property is located at 1861 E 62nd Los Angeles, CA.
What is the asking price?
The asking price for this property is $600,000.
What are key features of this property?
This property features: High Walk Score (95): Situated in a "Walker's Paradise," indicating excellent walkability and access to amenities.; Fully Leased Investment Property: Currently 100% leased, providing immediate income for investors.; Strategic Corner Lot Location: Located on a corner lot between Slauson and Gage Ave, benefiting from high traffic volume and exposure.
