Koreatown Mixed-Use Investment
For Sale
$3,100,000
4406-4414 W 2nd St. & 201-207 S Western Ave., Los Angeles, CA 90004
Mixed-use retail/office building on a signalized corner lot.
Property Size11,016 SF
Price / SF$281.41
Days on Market268
Property Features for 4406-4414 W 2nd St. & 201-207 S Western Ave.
General Information
Standard status
Active
Size
11,016 SF
Property subtype
Retail
Building Details
Building Size
11,016 SF
Year Built
1923
Listing Agency:
SVN | Rich Investment Real Estate Partners Los Angeles
(626) 688-8864
Listed By:
Michael Chang · License #CalDRE #01880895
(626) 688-8864
Source:
Svn
Added: Nov 21, 2025
Changed: Aug 15
Last Checked: Aug 15 at 4:26AM
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 SVN | Rich Investment Real Estate Partners Los Angeles
Investment Insights
Based on property information with market context.
This mixed-use retail and office building is comprised of two structures situated on a signalized corner lot in Koreatown, Los Angeles. The property benefits from a location on a busy corridor with approximately 40,000 vehicles per day. The primary tenant is a regional mattress store with multiple locations across Los Angeles. The remaining tenant roster consists of local professionals and creatives occupying office suites throughout the second floor of the building, with an adjacent building rented out as an entertainment studio. The property offers investors the opportunity to capitalize on cash flow with rental upside, and/or occupy one or several units. The property has been under the same ownership for over 40 years and features masonry construction with curb appeal. An additional income stream is generated from a water machine. The property offers flexibility to reposition tenants with mostly short-term leases.
Key Highlights
- High‑traffic location in Koreatown with approximately 40,000 vehicles per day
- Investment opportunity with a 6% CAP rate and approximately 20% rental upside
- Owner/User opportunity with flexibility to reposition tenants due to mostly short‑term leases
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
$261,478
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
8.43%
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%
$5,229,560
$5.2M
Cap Rate 7%
$3,735,400
$3.7M
Cap Rate 9%
$2,905,311
$2.9M
Market Conditions
NOI Build-Up for 11,016 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
$428.3K $38.88/SF
− Vacancy
−$79.7K −$7.23/SF
EGI
$348.6K $31.65/SF
− OpEx
−$87.2K −$7.91/SF
NOI
$261.5K $23.74/SF
Area
Los Angeles, CA
Vacancy
18.60%
Lease Rate
$38.88 /SF/Yr
Expense Ratio
25.00%
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%
$5,229,560
Cap Rate 7%
$3,735,400
Cap Rate 9%
$2,905,311
Alternative Uses
Best Use
Office B
$3.74M
$3.27M – $4.36M
NOI $261,478 @ 7.0% cap · market cap 8.43%
Second Best
Retail
$3.65M
$3.20M – $4.26M
NOI $255,650 @ 7.0% cap · market cap 8.25%
Theoretical Best
Multifamily LT 5
$223.18M
$195.28M – $260.37M
NOI $15,622,428 @ 7.0% cap · market cap 503.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,062
Businesses Nearby
Explore this area
Business Placement
Demographics for 90004, CA
58,585
Population
26,046
Households
2.2
Avg Household Size
37
Median Age
40%
College-Educated
78%
High-School Grad
3.1 sq mi
ZIP Area
18,898
Density / Sq Mi
$62,655
Median Household Income
$39,359
Median Earnings
$1,752
Median Rent
$1,457,200
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 - Mixed-use retail/office building on a signalized corner lot.
Where is this retail space located?
The property is located at 4406-4414 W 2nd St. & 201-207 S Western Ave. Los Angeles, CA.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: High‑traffic location in Koreatown with approximately 40,000 vehicles per day; Investment opportunity with a 6% CAP rate and approximately 20% rental upside; Owner/User opportunity with flexibility to reposition tenants due to mostly short‑term leases
