Prime Pasadena Retail Storefront
For Sale
Contact for pricing
396-400 S Lake Avenue, Pasadena, CA 91101
Highly visible retail asset in Pasadena's South Lake Avenue District.
Property Size8,250 SF
Lot Size0.21 Acres
Price / SF$787.88
Days on Market200
Property Features for 396-400 S Lake Avenue
General Information
Standard status
Active
Size
8,250 SF
Total Parking Spaces
500
Lot size
0.21 Acres
Property subtype
Retail
Zoning
CD-CL (Central District - Commercial Limited)
Investment Type
Owner/User
Building Details
Year Built
1952
Stories
1
Listing Agency:
CBRE LA
(239) 631-8788
Listed By:
Jenny Eng · License #CA 01931224
Source:
Crexi
Added: Jan 30
Changed: Aug 8
Last Checked: Aug 17 at 3:10PM
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 LA
Investment Insights
Based on property information with market context.
This is an opportunity to acquire an approximately 8,250 square foot storefront retail asset located in the South Lake Avenue District of Pasadena. The property, constructed in 1952, is situated on an approximately 9,015 square foot parcel with CD-CL (Central District Commercial Limited) zoning. The property features frontage on Lake Avenue and signage visibility, with walkability to retail and lifestyle destinations. The location is near the new Erewhon Market and The Shops on Lake Avenue, as well as national retailers, fitness studios, and restaurants. The South Lake Avenue District is a 12-block lifestyle corridor known for shopping and dining, blending national brands with local establishments. The property is positioned for long-term value creation through lease-up, repositioning, or redevelopment. The property is intended for use as a storefront retail asset.
Key Highlights
- Prime location in Pasadena's prestigious South Lake Avenue District, known for sophisticated shopping and dining.
- High‑visibility storefront retail asset with prominent Lake Avenue frontage and exceptional signage opportunities.
- Located on a ±9,015 SF parcel with favorable CD‑CL zoning, offering potential for strategic lease‑up, creative repositioning, or ground‑up redevelopment.
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
$208,535
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
3.21%
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%
$4,170,700
$4.2M
Cap Rate 7%
$2,979,071
$3.0M
Cap Rate 9%
$2,317,056
$2.3M
Market Conditions
NOI Build-Up for 8,250 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
$304.9K $36.96/SF
− Vacancy
−$7.0K −$0.85/SF
EGI
$297.9K $36.11/SF
− OpEx
−$89.4K −$10.83/SF
NOI
$208.5K $25.28/SF
Area
Pasadena, CA
Vacancy
2.30%
Lease Rate
$36.96 /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%
$4,170,700
Cap Rate 7%
$2,979,071
Cap Rate 9%
$2,317,056
Alternative Uses
Best Use
Retail
$2.98M
$2.61M – $3.48M
NOI $208,535 @ 7.0% cap · market cap 3.21%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$185.71M
$162.49M – $216.66M
NOI $12,999,552 @ 7.0% cap · market cap 199.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,350
Businesses Nearby
563k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 25%
Apparel 21%
Shops & Services 19%
Groceries 15%
Target
Superstores
139,271 visits/mo
0.5 miles
Macy's
Apparel
60,723 visits/mo
0.1 miles
Total Wine & More
Groceries
58,318 visits/mo
0.5 miles
Ross Dress for Less
Apparel
52,032 visits/mo
0.2 miles
Michaels
Shops & Services
43,666 visits/mo
0.5 miles
Demographics for 91101, CA
20,583
Population
12,400
Households
1.7
Avg Household Size
38
Median Age
63%
College-Educated
93%
High-School Grad
1.3 sq mi
ZIP Area
15,833
Density / Sq Mi
$94,180
Median Household Income
$62,458
Median Earnings
$2,282
Median Rent
$687,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Storefront property - Highly visible retail asset in Pasadena's South Lake Avenue District.
Where is this storefront property located?
The property is located at 396-400 S Lake Avenue Pasadena, CA.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: Prime location in Pasadena's prestigious South Lake Avenue District, known for sophisticated shopping and dining.; High‑visibility storefront retail asset with prominent Lake Avenue frontage and exceptional signage opportunities.; Located on a ±9,015 SF parcel with favorable CD‑CL zoning, offering potential for strategic lease‑up, creative repositioning, or ground‑up redevelopment.
