Montebello Commercial Shop For
For Sale
$1,000,000
1540 W Olympic, Montebello, CA 90640
Large commercial building with showroom/office and garage in Montebello.
Property Size3,260 SF
Lot Size0.23 Acres
Price / SF$333.33
Days on Market138
Property Features for 1540 W Olympic
General Information
Standard status
Active
Size
3,260 SF
Lot size
0.23 Acres
Property subtype
Commercial
Building Details
Building Size
3,260 SF
Year Built
1944
Units
1
Listing Agency:
CENTURY 21 REALTY MASTERS
(323) 722-7300
Listed By:
DANIEL PEREZ · License #01789400
(323) 722-7300
Source:
Elliman
Added: Mar 24
Changed: Aug 8
Last Checked: Aug 8 at 2:34PM
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.
Located in Montebello, this commercial property offers a 10,000 square foot lot with a building that features a 3,000 square foot office area and a large garage suitable for a showroom or office space. The property is zoned for light industrial use and is situated in a highly visible location between Garfield Avenue and Montebello Boulevard, providing significant exposure to passing traffic. Previously used as an auto body shop, the property is suitable for various automotive-related businesses, including auto rental, repair, service, stereo and alarm installation, tire sales, and upholstery services, as well as car part sales or a storage warehouse for delivery services. The building includes side alley access for convenient drop-offs and deliveries. Upgrades include newer electrical panels and newer roofs in some covered areas. The property features three bathrooms and two offices. It is ideal for car enthusiasts or car restoration businesses.
Key Highlights
- Large 10,000 sq ft lot with a 3,000 sq ft building.
- Light Industrial zoning allows for various business uses (Auto Repair, Storage, etc.).
- High‑visibility location between Garfield Ave and Montebello Blvd.
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
$66,374
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
6.64%
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%
$1,327,480
$1.3M
Cap Rate 7%
$948,200
$948.2K
Cap Rate 9%
$737,489
$737.5K
Market Conditions
NOI Build-Up for 3,000 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
$101.5K $33.84/SF
− Vacancy
−$6.7K −$2.23/SF
EGI
$94.8K $31.61/SF
− OpEx
−$28.4K −$9.48/SF
NOI
$66.4K $22.12/SF
Area
Los Angeles County, CA
Vacancy
6.60%
Lease Rate
$33.84 /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%
$1,327,480
Cap Rate 7%
$948,200
Cap Rate 9%
$737,489
Alternative Uses
Best Use
Retail
$948.2K
$829.7K – $1.11M
NOI $66,374 @ 7.0% cap · market cap 6.64%
Second Best
Warehouse
$557.7K
$488.0K – $650.6K
NOI $39,036 @ 7.0% cap · market cap 3.90%
Theoretical Best
Office A
$1.61M
$1.41M – $1.87M
NOI $112,433 @ 7.0% cap · market cap 11.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,167
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 90640, CA
62,678
Population
20,438
Households
3.1
Avg Household Size
38
Median Age
22%
College-Educated
74%
High-School Grad
8.3 sq mi
ZIP Area
7,552
Density / Sq Mi
$74,833
Median Household Income
$37,983
Median Earnings
$1,771
Median Rent
$660,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Large commercial building with showroom/office and garage in Montebello.
Where is this auto shop located?
The property is located at 1540 W Olympic Montebello, CA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Large 10,000 sq ft lot with a 3,000 sq ft building.; Light Industrial zoning allows for various business uses (Auto Repair, Storage, etc.).; High‑visibility location between Garfield Ave and Montebello Blvd.
