Functional Distribution Property in Rancho
For Sale
$13,500,000
18737 S Reyes Avenue, Compton, CA 90221
Distribution property in Rancho Dominguez with ample parking and freeway access.
Property Size57,416 SF
Lot Size2.31 Acres
Price / SF$235.13
Days on Market217
Property Features for 18737 S Reyes Avenue
General Information
Standard status
Active
Size
57,416 SF
Lot size
2.31 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1971
Listing Agency:
The CREM Group
(323) 208-9512
Listed By:
Mark Cianciulli · License #01990266
(323) 208-9512
Source:
Exitrealty
Added: Jan 26
Changed: Aug 25
Last Checked: Aug 30 at 1:32PM
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 The CREM Group
Investment Insights
Based on property information with market context.
Located in Rancho Dominguez, this distribution property offers a 57,416 square foot building on a 100,580 square foot lot. The property includes 5,000 square feet of office space, representing an 8.7% office space ratio. There are 74 parking spaces available. The warehouse features 23-foot ceilings and six docks. Electrical service is provided through two panels delivering 1,400 amps. The lot is privately fenced. The property is located near the 91, 405, 710, and 110 freeways, providing access for transportation and distribution. This property is an investment opportunity in the Rancho Dominguez industrial sector.
Key Highlights
- Prime location with immediate access to the 91, 405, 710, and 110 freeways.
- Large 57,416 square foot building on a 100,580 square foot privately fenced lot.
- Substantial electrical capacity with 1,400 amps of power.
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
$747,093
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
5.53%
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%
$14,941,860
$14.9M
Cap Rate 7%
$10,672,757
$10.7M
Cap Rate 9%
$8,301,033
$8.3M
Market Conditions
NOI Build-Up for 57,416 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
$923.2K $16.08/SF
− Vacancy
−$44.3K −$0.77/SF
EGI
$878.9K $15.31/SF
− OpEx
−$131.8K −$2.30/SF
NOI
$747.1K $13.01/SF
Area
Los Angeles County, CA
Vacancy
4.80%
Lease Rate
$16.08 /SF/Yr
Expense Ratio
15.00%
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%
$14,941,860
Cap Rate 7%
$10,672,757
Cap Rate 9%
$8,301,033
Alternative Uses
Best Use
Warehouse
$10.67M
$9.34M – $12.45M
NOI $747,093 @ 7.0% cap · market cap 5.53%
Second Best
Industrial
$9.59M
$8.39M – $11.18M
NOI $670,968 @ 7.0% cap · market cap 4.97%
Theoretical Best
Office A
$30.74M
$26.90M – $35.86M
NOI $2,151,821 @ 7.0% cap · market cap 15.94%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
570
Businesses Nearby
Explore this area
Business Placement
Demographics for 90221, CA
52,561
Population
12,854
Households
4.1
Avg Household Size
31
Median Age
8%
College-Educated
58%
High-School Grad
5.4 sq mi
ZIP Area
9,734
Density / Sq Mi
$68,191
Median Household Income
$34,426
Median Earnings
$1,600
Median Rent
$541,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Distribution property - Distribution property in Rancho Dominguez with ample parking and freeway access.
Where is this distribution property located?
The property is located at 18737 S Reyes Avenue Compton, CA.
What is the asking price?
The asking price for this property is $13,500,000.
What are key features of this property?
This property features: Prime location with immediate access to the 91, 405, 710, and 110 freeways.; Large 57,416 square foot building on a 100,580 square foot privately fenced lot.; Substantial electrical capacity with 1,400 amps of power.
