Established Restaurant with
For Sale
$2,750,000
486 West 20th Street, San Pedro, CA 90731
Corner-site restaurant offering an equipped kitchen, dedicated parking, and a renovated two-bedroom residence with separate utilities.
Property Size2,996 SF
Lot Size0.21 Acres
Price / SF$917.89
Days on Market293
Property Features for 486 West 20th Street
General Information
Standard status
Active
Size
2,996 SF
Total Parking Spaces
14
Lot size
0.21 Acres
Property subtype
Commercial Sale / Mixed Use
Net Operating Income
$480,000
Additional Details
Business Included
Yes
Equipment Included
Yes
Building Details
Year Built
1922
Buildings
3
Listing Agency:
T.N.G. Real Estate Consultants
(714) 987-3310
Listed By:
Jacob Abeelen · License #01973535
(714) 987-3310
Source:
Compass
Added: Nov 11, 2025
Changed: Aug 31
Last Checked: Aug 31 at 3:10AM
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 T.N.G. Real Estate Consultants
Investment Insights
Based on property information with market context.
This offering combines an operating restaurant, a separate parking parcel, and a renovated residence across two contiguous parcels. The restaurant occupies approximately 2,340 square feet within 2,986 square feet of total improvements and includes a commercial kitchen, dining area, and restroom. Restaurant equipment is included and owned outright. A 15’ x 20’ storage building supports the restaurant’s operations.
The additional 4,502-square-foot parcel is configured as a parking lot with approximately 14 spaces, including two reserved for the neighboring single-family residence. The restaurant site is positioned on a corner with street visibility. The business has operated for more than 70 years, including 25 years under the same family ownership.
The property also includes a fully renovated 656-square-foot, 2-bedroom, 1-bathroom residence with independent utility services. The residence provides residential flexibility alongside the restaurant and commercial improvements.
The additional 4,502-square-foot parcel is configured as a parking lot with approximately 14 spaces, including two reserved for the neighboring single-family residence. The restaurant site is positioned on a corner with street visibility. The business has operated for more than 70 years, including 25 years under the same family ownership.
The property also includes a fully renovated 656-square-foot, 2-bedroom, 1-bathroom residence with independent utility services. The residence provides residential flexibility alongside the restaurant and commercial improvements.
Key Highlights
- Operating restaurant business, real estate, and equipment included
- Approximately 2,340 SF restaurant with commercial kitchen, dining area, and restroom
- Two contiguous 4,502‑square‑foot parcels
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
$81,139
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
2.95%
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%
$1,622,780
$1.6M
Cap Rate 7%
$1,159,129
$1.2M
Cap Rate 9%
$901,544
$901.5K
Market Conditions
NOI Build-Up for 2,996 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
$110.7K $36.96/SF
− Vacancy
−$2.5K −$0.85/SF
EGI
$108.2K $36.11/SF
− OpEx
−$27.0K −$9.03/SF
NOI
$81.1K $27.08/SF
Area
Los Angeles, CA
Vacancy
2.30%
Lease Rate
$36.96 /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%
$1,622,780
Cap Rate 7%
$1,159,129
Cap Rate 9%
$901,544
Alternative Uses
Best Use
Specialty Retail
$1.16M
$1.01M – $1.35M
NOI $81,139 @ 7.0% cap · market cap 2.95%
Second Best
Mixed Use
$866.7K
$758.4K – $1.01M
NOI $60,669 @ 7.0% cap · market cap 2.21%
Theoretical Best
Multifamily LT 5
$60.70M
$53.11M – $70.81M
NOI $4,248,801 @ 7.0% cap · market cap 154.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
5,060
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 90731, CA
61,270
Population
24,477
Households
2.5
Avg Household Size
38
Median Age
25%
College-Educated
81%
High-School Grad
9.3 sq mi
ZIP Area
6,588
Density / Sq Mi
$71,936
Median Household Income
$41,324
Median Earnings
$1,645
Median Rent
$808,800
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?
Conventional restaurant - Corner-site restaurant offering an equipped kitchen, dedicated parking, and a renovated two-bedroom residence with separate utilities.
Where is this conventional restaurant located?
The property is located at 486 West 20th Street San Pedro, CA.
What is the asking price?
The asking price for this property is $2,750,000.
What are key features of this property?
This property features: Operating restaurant business, real estate, and equipment included; Approximately 2,340 SF restaurant with commercial kitchen, dining area, and restroom; Two contiguous 4,502‑square‑foot parcels
