Winnetka Commercial Property with Cell
For Sale
$2,050,000
19740 Sherman Way, Winnetka, CA 91306
Three commercial units with cell tower income in Winnetka.
Property Size4,005 SF
Days on Market397
Property Features for 19740 Sherman Way
General Information
Standard status
Active
Size
4,005 SF
Property subtype
Retail
Taxes and HOA fees
Annual Taxes
$24,937
Building Details
Building Size
4,005 SF
Year Built
1956
Listing Agency:
Keller Williams R. E. Services
(818) 432-3200
Listed By:
Vartan Ambarian · License #00983815
Source:
Truthrealty
Added: Aug 1, 2025
Changed: Aug 28
Last Checked: Aug 30 at 11:31PM
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 Keller Williams R. E. Services
Investment Insights
Based on property information with market context.
This commercial property in Winnetka features three commercial units suitable for office, retail, or service-oriented businesses. The property includes a cell tower lease that generates passive revenue. The combined lot size of the two parcels is 15,780 square feet. The property offers on-site parking and potential for expansion. It is conveniently situated with easy access to major roads and public transportation in a high-traffic Winnetka corridor. This is an income-producing property with upside potential, whether for long-term hold or future redevelopment.
Key Highlights
- Cell Tower Income: Generates passive revenue, enhancing long‑term value and ROI.
- Three Commercial Units: Versatile spaces suitable for office, retail, or service‑oriented businesses.
- Prime Location: Conveniently situated in a high‑traffic Winnetka corridor with easy access to major roads and public transportation.
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
$88,609
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
4.32%
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%
$1,772,180
$1.8M
Cap Rate 7%
$1,265,843
$1.3M
Cap Rate 9%
$984,544
$984.5K
Market Conditions
NOI Build-Up for 4,005 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
$135.5K $33.84/SF
− Vacancy
−$8.9K −$2.23/SF
EGI
$126.6K $31.61/SF
− OpEx
−$38.0K −$9.48/SF
NOI
$88.6K $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%
$1,772,180
Cap Rate 7%
$1,265,843
Cap Rate 9%
$984,544
Alternative Uses
Best Use
Retail
$1.27M
$1.11M – $1.48M
NOI $88,609 @ 7.0% cap · market cap 4.32%
Second Best
Office B
$1.25M
$1.09M – $1.46M
NOI $87,546 @ 7.0% cap · market cap 4.27%
Theoretical Best
Office A
$2.14M
$1.88M – $2.50M
NOI $150,098 @ 7.0% cap · market cap 7.32%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,236
Businesses Nearby
Explore this area
Business Placement
Demographics for 91306, CA
46,669
Population
15,176
Households
3.1
Avg Household Size
39
Median Age
31%
College-Educated
79%
High-School Grad
4.2 sq mi
ZIP Area
11,112
Density / Sq Mi
$88,958
Median Household Income
$39,524
Median Earnings
$1,909
Median Rent
$719,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Retail space - Three commercial units with cell tower income in Winnetka.
Where is this retail space located?
The property is located at 19740 Sherman Way Winnetka, CA.
What is the asking price?
The asking price for this property is $2,050,000.
What are key features of this property?
This property features: Cell Tower Income: Generates passive revenue, enhancing long‑term value and ROI.; Three Commercial Units: Versatile spaces suitable for office, retail, or service‑oriented businesses.; Prime Location: Conveniently situated in a high‑traffic Winnetka corridor with easy access to major roads and public transportation.
