Conventional Restaurant with
New
For Sale
$2,250,000
535 S Lake Ave, Pasadena, CA 91101
Entitled restaurant opportunity with a full liquor license and outdoor patio potential.
Property Size6,721 SF
Price / SF$334.77
Days on Market6
Property Features for 535 S Lake Ave
General Information
Standard status
Active
Size
6,721 SF
Property subtype
Retail
Additional Details
Liquor License
Yes
Building Details
Building Size
6,721 SF
Year Built
1933
Listing Agency:
Lee & Associates - Los Angeles - Downtown
(626) 786-7430
Listed By:
Evan Jurgensen · License #CalDRE #01967347
(626) 786-7430
Source:
Lee-associates
Added: Aug 28
Changed: Sep 1
Last Checked: Sep 1 at 8:28PM
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 Lee & Associates - Los Angeles - Downtown
Investment Insights
Based on property information with market context.
Located at 535 S Lake Ave in Pasadena, this 6,721 SF commercial property was built in 1933 and is positioned for restaurant use. The offering includes an entitlement, a full liquor license, and the possibility of outdoor patio seating.
The property also carries potential for live music and off-site catering. Nearby parking options include free parking on Shoppers Lane with 509 stalls, along with 360 complimentary spaces in the Macy’s garage.
The property also carries potential for live music and off-site catering. Nearby parking options include free parking on Shoppers Lane with 509 stalls, along with 360 complimentary spaces in the Macy’s garage.
Key Highlights
- 6,721 SF entitled commercial opportunity at 535 S Lake Ave
- Full liquor license included
- Potential for live music and off‑site catering
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
$182,021
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
8.09%
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%
$3,640,420
$3.6M
Cap Rate 7%
$2,600,300
$2.6M
Cap Rate 9%
$2,022,456
$2.0M
Market Conditions
NOI Build-Up for 6,721 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
$248.4K $36.96/SF
− Vacancy
−$5.7K −$0.85/SF
EGI
$242.7K $36.11/SF
− OpEx
−$60.7K −$9.03/SF
NOI
$182.0K $27.08/SF
Area
Pasadena, 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%
$3,640,420
Cap Rate 7%
$2,600,300
Cap Rate 9%
$2,022,456
Alternative Uses
Best Use
Specialty Retail
$2.60M
$2.28M – $3.03M
NOI $182,021 @ 7.0% cap · market cap 8.09%
Second Best
Retail
$2.43M
$2.12M – $2.83M
NOI $169,886 @ 7.0% cap · market cap 7.55%
Theoretical Best
Multifamily LT 5
$151.29M
$132.38M – $176.51M
NOI $10,590,302 @ 7.0% cap · market cap 470.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Liquor license
Location Intelligence
Trade Area within ½ mile
5,544
Businesses Nearby
259k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 47%
Dining 27%
Groceries 10%
Shops & Services 8%
Macy's
Apparel
60,723 visits/mo
0.1 miles
Ross Dress for Less
Apparel
52,032 visits/mo
0.1 miles
Pavilions
Groceries
25,318 visits/mo
0.1 miles
Peet's Coffee & Tea
Dining
13,376 visits/mo
0.2 miles
Chipotle Mexican Grill
Dining
10,847 visits/mo
0.3 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?
Conventional restaurant - Entitled restaurant opportunity with a full liquor license and outdoor patio potential.
Where is this conventional restaurant located?
The property is located at 535 S Lake Ave Pasadena, CA.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: 6,721 SF entitled commercial opportunity at 535 S Lake Ave; Full liquor license included; Potential for live music and off‑site catering
