Santa Ana M-1 Zoned
For Sale
$995,000
1724 W 2nd, Santa Ana, CA 92703
M-1 zoned commercial property suitable for various uses.
Property Size3,486 SF
Days on Market107
Property Features for 1724 W 2nd
General Information
Standard status
Active
Size
3,486 SF
Property subtype
Industrial
Building Details
Building Size
3,486 SF
Year Built
1948
Units
1
Listing Agency:
Dynasty Realty
(626) 336-6191
Listed By:
Lidai Chang · License #01823947
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Jul 16 at 4:00AM
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 Dynasty Realty
Investment Insights
Based on property information with market context.
This M-1 zoned commercial property is located in a residential neighborhood of Santa Ana. It is suitable for warehouse use, mechanic workshop, light manufacturing, professional services, or equipment storage. The property includes a reception area, a private office, and a bathroom with a shower. A recently approved 3-phase electrical panel, authorized by the City of Santa Ana on 11/14/24, supports a range of industrial and commercial uses. Security features include metal gates and window bars throughout the facility. According to the City’s General Plan and AB 330, the property may also present a potential residential redevelopment opportunity. The location has a bike score of 65, indicating it is bikeable, a walk score of 87, indicating it is very walkable, and a transit score of 45, indicating some transit options are available.
Key Highlights
- M‑1 zoning in a residential neighborhood offers flexibility.
- Recently approved 3‑phase electrical panel supports diverse industrial/commercial uses.
- Potential residential redevelopment opportunity based on City’s General Plan and AB 330.
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
$56,127
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
5.64%
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%
$1,122,540
$1.1M
Cap Rate 7%
$801,814
$801.8K
Cap Rate 9%
$623,633
$623.6K
Market Conditions
NOI Build-Up for 3,486 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
$85.8K $24.60/SF
− Vacancy
−$5.6K −$1.60/SF
EGI
$80.2K $23.00/SF
− OpEx
−$24.1K −$6.90/SF
NOI
$56.1K $16.10/SF
Area
ZIP 92703
Vacancy
6.50%
Lease Rate
$24.60 /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%
$1,122,540
Cap Rate 7%
$801,814
Cap Rate 9%
$623,633
Alternative Uses
Best Use
Retail
$801.8K
$701.6K – $935.5K
NOI $56,127 @ 7.0% cap · market cap 5.64%
Second Best
Warehouse
$781.8K
$684.1K – $912.1K
NOI $54,728 @ 7.0% cap · market cap 5.50%
Theoretical Best
Office A
$1.01M
$882.8K – $1.18M
NOI $70,627 @ 7.0% cap · market cap 7.10%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,129
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92703, CA
65,621
Population
14,644
Households
4.5
Avg Household Size
34
Median Age
13%
College-Educated
60%
High-School Grad
4.2 sq mi
ZIP Area
15,624
Density / Sq Mi
$80,817
Median Household Income
$33,363
Median Earnings
$1,922
Median Rent
$585,900
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?
Warehouse - M-1 zoned commercial property suitable for various uses.
Where is this warehouse located?
The property is located at 1724 W 2nd Santa Ana, CA.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: M‑1 zoning in a residential neighborhood offers flexibility.; Recently approved 3‑phase electrical panel supports diverse industrial/commercial uses.; Potential residential redevelopment opportunity based on City’s General Plan and AB 330.
