Building Details

Year Built 1986

Buildings 1

Tenancy Single

Listing Agency: CBRE - Orange County

Listed By: Bryan Johnson · License #02018612

Source: Crexi

Added: Feb 9, 2024 Changed: Sep 29 Last Checked: Oct 12 at 7:26PM

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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 CBRE - Orange County

Investment Insights

Based on property information with market context.

This property presents an owner-user office/flex opportunity in a freeway-adjacent location, situated within a high-image, campus-environment setting. The low-rise asset is located within a campus environment featuring lush landscaping and recent multimillion-dollar common-area upgrades, including an association lounge space. The property offers convenient surface parking and excellent egress/ingress with direct freeway access. Currently built out as office space, the property features three ground-level doors that have been drywalled over. New ownership can easily transition the property to be more flex in nature by removing the drywall and creating warehouse space. Alternatively, an office user can maintain the property in its current condition or replace the ground-level doors with storefronts or glass rollup doors to further enhance the exterior light into the space. The property offers a unique larger 2-story office/flex owner-user opportunity in a market with very little office supply available for users. The property size is 54129 square feet.

Key Highlights

• Freeway‑adjacent location with excellent access and high visibility.
• Rare owner‑user opportunity for a larger 2‑story office/flex space.
• Flexibility to convert office space to flex/warehouse space with ground‑level doors.

Financial Insights

Estimated NOI and Cap Rate

NOI / Yr

$1,064,435

Cap Rate

7.42%

Suggested Prices Based on Cap Rates

Cap Rate 5%

$21,288,700 $21.3M

Cap Rate 7%

$15,206,214 $15.2M

Cap Rate 9%

$11,827,056 $11.8M

Market Conditions

NOI Build-Up for 54,129 SF

Gross rent

$1.62M $29.88/SF

− Vacancy

−$198.1K −$3.66/SF

EGI

$1.42M $26.22/SF

− OpEx

−$354.8K −$6.55/SF

NOI

$1.06M $19.66/SF

Area

Orange County, CA

Vacancy

12.25%

Lease Rate

$29.88 /SF/Yr

Expense Ratio

25.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates

Cap Rate 5%

$21,288,700

Cap Rate 7%

$15,206,214

Cap Rate 9%

$11,827,056

Alternative Uses

Best Use

Office B

$15.21M

$13.31M – $17.74M (±1% cap)

NOI $1,064,435 @ 7.0% cap · market cap 7.42%

Second Best

Flex RnD

$14.07M

$12.31M – $16.41M (±1% cap)

NOI $984,845 @ 7.0% cap · market cap 6.87%

Theoretical Best

Office A

$18.18M

$15.91M – $21.21M (±1% cap)

NOI $1,272,659 @ 7.0% cap · market cap 8.87%

Zoning and permitted uses should be independently verified with authorities. How Realmo checks its estimates

Property Analytics

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Current Use

Office buildings

Suggested Use

Top Pick Restaurant Dental Office Real Estate Agency Spa & Massage Center Auto Repair Shop Auto Parts Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

1,220

Businesses Nearby

Explore this area Business Placement

Demographics for 90623, CA

15,906

Population

5,191

Households

3.1

Avg Household Size

44

Median Age

49%

College-Educated

94%

High-School Grad

1.8 sq mi

ZIP Area

8,837

Density / Sq Mi

$112,366

Median Household Income

$59,061

Median Earnings

$2,224

Median Rent

$920,200

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this office buildings located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Office building - High-image office/flex building with user flexibility and freeway access.

Where is this office building located?

The property is located at 18 Centerpointe Dr La Palma, CA.

What is the asking price?

The asking price for this property is $14,345,000.

What are key features of this property?

This property features: Freeway‑adjacent location with excellent access and high visibility.; Rare owner‑user opportunity for a larger 2‑story office/flex space.; Flexibility to convert office space to flex/warehouse space with ground‑level doors.