Downey Mixed-Use Investment
For Sale
$1,350,000
13000 Paramount, Downey, CA 90242
Mixed-use property with retail and residential units in Downey.
Property Size3,421 SF
Lot Size0.14 Acres
Price / SF$741.76
Days on Market151
Property Features for 13000 Paramount
General Information
Standard status
Active
Size
3,421 SF
Lot size
0.14 Acres
Property subtype
Investment
Building Details
Building Size
3,421 SF
Year Built
1929
Units
4
Listing Agency:
Keller Williams Coastal Properties
(562) 843-1017
Listed By:
Stelios Zoumberakis · License #02049494
Source:
Elliman
Added: Mar 11
Changed: Aug 8
Last Checked: Aug 8 at 6:10AM
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 Keller Williams Coastal Properties
Investment Insights
Based on property information with market context.
This mixed-use property in Downey features two buildings, offering a combination of street-front retail and multifamily residential units. The front building includes 1,820 square feet of ground-floor retail space, currently occupied by a tenant with 8 years remaining on the lease, and a 1-bedroom residential unit above. The rear building contains two stacked residential units: a non-conforming 2-bedroom ground-floor unit and a permitted 2-bedroom unit above. The non-conforming unit offers an opportunity for an owner-user to occupy as a live/work residence, or potentially legalize or expand under current ADU provisions. All residential tenants are currently on month-to-month leases, providing flexibility to reposition, adjust rents, or occupy units. Located on Paramount Blvd, the property benefits from high visibility, convenient freeway access, and proximity to schools, restaurants, and major businesses.
Key Highlights
- Mixed‑use property with street‑front retail and multifamily residential units, offering diversified income streams.
- Stable, long‑term retail tenant (8 years remaining on lease) provides immediate income.
- Opportunity for owner‑user to occupy the non‑conforming ground‑floor unit as a live/work space or potentially legalize/expand it as an ADU.
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
$46,004
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
3.41%
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%
$920,080
$920.1K
Cap Rate 7%
$657,200
$657.2K
Cap Rate 9%
$511,156
$511.2K
Market Conditions
NOI Build-Up for 1,820 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
$67.3K $36.96/SF
− Vacancy
−$1.5K −$0.85/SF
EGI
$65.7K $36.11/SF
− OpEx
−$19.7K −$10.83/SF
NOI
$46.0K $25.28/SF
Area
Downey, 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%
$920,080
Cap Rate 7%
$657,200
Cap Rate 9%
$511,156
Alternative Uses
Best Use
Retail
$657.2K
$575.1K – $766.7K
NOI $46,004 @ 7.0% cap · market cap 3.41%
Second Best
Office B
$596.7K
$522.1K – $696.2K
NOI $41,769 @ 7.0% cap · market cap 3.09%
Theoretical Best
Office A
$742.6K
$649.7K – $866.3K
NOI $51,979 @ 7.0% cap · market cap 3.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,161
Businesses Nearby
Explore this area
Business Placement
Demographics for 90242, CA
42,939
Population
12,756
Households
3.4
Avg Household Size
36
Median Age
24%
College-Educated
79%
High-School Grad
4.5 sq mi
ZIP Area
9,542
Density / Sq Mi
$83,238
Median Household Income
$42,064
Median Earnings
$1,874
Median Rent
$676,100
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with retail and residential units in Downey.
Where is this mixed-use property located?
The property is located at 13000 Paramount Downey, CA.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Mixed‑use property with street‑front retail and multifamily residential units, offering diversified income streams.; Stable, long‑term retail tenant (8 years remaining on lease) provides immediate income.; Opportunity for owner‑user to occupy the non‑conforming ground‑floor unit as a live/work space or potentially legalize/expand it as an ADU.
