Fully Operating First-Floor
For Sale
Contact for pricing
1010-1014 S San Pedro St, Los Angeles, CA 90015
Fully operating restaurant on the first floor in a local landmark building.
Property Size5,184 SF
Price / SF$770.64
Days on Market734
Property Features for 1010-1014 S San Pedro St
General Information
Standard status
Active
Size
5,184 SF
Property subtype
RETAIL
Additional Details
Floor
1
Business Included
Yes
Listing Agency:
Lee & Associates
(323) 922-3832
Listed By:
Sehyung Kim · License #01327276
(213) 290-3599
Source:
Moodyscre
Added: Sep 12, 2024
Changed: Sep 11
Last Checked: Sep 14 at 11:37AM
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 Lee & Associates
Investment Insights
Based on property information with market context.
Fully operating restaurant located on the first floor of a local landmark building. The property is described as first time on the market for sale in over 50 years.
Public remarks note that Paul’s Kitchen has been continuously in operation since 1946 and is also for sale. The building sits directly across the street from a city market development project.
With 5,184 square feet of property size, this offering may appeal to operators seeking an established restaurant presence with an existing, operating layout on the first floor.
Public remarks note that Paul’s Kitchen has been continuously in operation since 1946 and is also for sale. The building sits directly across the street from a city market development project.
With 5,184 square feet of property size, this offering may appeal to operators seeking an established restaurant presence with an existing, operating layout on the first floor.
Key Highlights
- 5,184 square feet landmark restaurant building
- Fully operating restaurant on the first floor
- Paul’s Kitchen continuously in operation since 1946
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
$140,395
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
3.51%
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%
$2,807,900
$2.8M
Cap Rate 7%
$2,005,643
$2.0M
Cap Rate 9%
$1,559,944
$1.6M
Market Conditions
NOI Build-Up for 5,184 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
$191.6K $36.96/SF
− Vacancy
−$4.4K −$0.85/SF
EGI
$187.2K $36.11/SF
− OpEx
−$46.8K −$9.03/SF
NOI
$140.4K $27.08/SF
Area
Los Angeles, CA
Vacancy
2.30%
Lease Rate
$36.96 /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%
$2,807,900
Cap Rate 7%
$2,005,643
Cap Rate 9%
$1,559,944
Alternative Uses
Best Use
Specialty Retail
$2.01M
$1.75M – $2.34M
NOI $140,395 @ 7.0% cap · market cap 3.51%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$105.02M
$91.90M – $122.53M
NOI $7,351,731 @ 7.0% cap · market cap 184.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
12,676
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 90015, CA
27,324
Population
14,635
Households
1.9
Avg Household Size
34
Median Age
48%
College-Educated
79%
High-School Grad
1.7 sq mi
ZIP Area
16,073
Density / Sq Mi
$63,211
Median Household Income
$47,819
Median Earnings
$2,385
Median Rent
$1,000,800
Median Home Value
Market
Vacancy Rate% for Retail in Los Angeles, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully operating restaurant on the first floor in a local landmark building.
Where is this conventional restaurant located?
The property is located at 1010-1014 S San Pedro St Los Angeles, CA.
What is the asking price?
The asking price for this property is $3,995,000.
What are key features of this property?
This property features: 5,184 square feet landmark restaurant building; Fully operating restaurant on the first floor; Paul’s Kitchen continuously in operation since 1946
