Owner-User Office
For Sale
$4,500,000
6926 Melrose Avenue, Los Angeles, CA 90038
Move-in ready office building with 10+ private offices, ADA restrooms, and gated parking for up to 14 vehicles.
Property Size6,773 SF
Days on Market89
Property Features for 6926 Melrose Avenue
General Information
Standard status
Active
Size
6,773 SF
Property subtype
COMMERCIAL
Building Details
Building Size
6,773 SF
Year Built
1946
Listing Agency:
Forward One
Listed By:
Jordan Rubinstein · License #01736033
(310) 435-3926
Source:
Archetyperealty
Added: Jun 17
Changed: Sep 8
Last Checked: Sep 12 at 9:56AM
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 Forward One
Investment Insights
Based on property information with market context.
Move-in ready owner-user office building with a versatile interior layout designed primarily for office use. The space includes 10+ private offices, a former school/day-care classroom, ADA-compliant bathrooms on each floor, and a full kitchen with gas appliances. The property also features an canopied outdoor patio area, roll-up gates, and ample gated parking for up to 14 vehicles. Building improvements and systems include fire sprinklers throughout, updated roofing and power infrastructure, five updated HVAC units, and upgraded building systems. For vehicle charging convenience, the site offers two 50-amp EV electric car chargers.
The property is located on a 9,477 SF parcel at the hard corner of Melrose and Sycamore in the Melrose Arts District. It is zoned LAC2 and positioned just one block east of La Brea, with Sycamore Village within walking distance.
Configured as an office building while offering flexibility for streetfront retail or showroom use, the property is well suited for owner-operators seeking a renovated, systems-upgraded workplace with accessible restrooms on each level and practical amenities for staff and visitors. Additional features such as roll-up gates, patio space, and on-site parking support a range of professional uses that benefit from a dedicated building environment.
The property is located on a 9,477 SF parcel at the hard corner of Melrose and Sycamore in the Melrose Arts District. It is zoned LAC2 and positioned just one block east of La Brea, with Sycamore Village within walking distance.
Configured as an office building while offering flexibility for streetfront retail or showroom use, the property is well suited for owner-operators seeking a renovated, systems-upgraded workplace with accessible restrooms on each level and practical amenities for staff and visitors. Additional features such as roll-up gates, patio space, and on-site parking support a range of professional uses that benefit from a dedicated building environment.
Key Highlights
- Move‑in ready 6,773 SF owner‑user office building on a 9,477 SF parcel zoned LAC2
- Hard corner on Melrose Blvd at Sycamore, one block east of La Brea, in the Melrose Arts District
- Versatile layout with 10+ private offices plus a former school/day‑care classroom and canopied outdoor patio
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
$160,766
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
3.57%
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%
$3,215,320
$3.2M
Cap Rate 7%
$2,296,657
$2.3M
Cap Rate 9%
$1,786,289
$1.8M
Market Conditions
NOI Build-Up for 6,773 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
$263.3K $38.88/SF
− Vacancy
−$49.0K −$7.23/SF
EGI
$214.4K $31.65/SF
− OpEx
−$53.6K −$7.91/SF
NOI
$160.8K $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%
$3,215,320
Cap Rate 7%
$2,296,657
Cap Rate 9%
$1,786,289
Alternative Uses
Best Use
Office B
$2.30M
$2.01M – $2.68M
NOI $160,766 @ 7.0% cap · market cap 3.57%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$137.22M
$120.06M – $160.09M
NOI $9,605,184 @ 7.0% cap · market cap 213.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
3,110
Businesses Nearby
Explore this area
Business Placement
Demographics for 90038, CA
27,414
Population
14,998
Households
1.8
Avg Household Size
36
Median Age
41%
College-Educated
76%
High-School Grad
1.5 sq mi
ZIP Area
18,276
Density / Sq Mi
$61,566
Median Household Income
$36,844
Median Earnings
$1,764
Median Rent
$1,089,200
Median Home Value
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Market
Vacancy Rate% for Office in West region
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Frequently Asked Questions
What type of property is this?
Office building - Move-in ready office building with 10+ private offices, ADA restrooms, and gated parking for up to 14 vehicles.
Where is this office building located?
The property is located at 6926 Melrose Avenue Los Angeles, CA.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: Move‑in ready 6,773 SF owner‑user office building on a 9,477 SF parcel zoned LAC2; Hard corner on Melrose Blvd at Sycamore, one block east of La Brea, in the Melrose Arts District; Versatile layout with 10+ private offices plus a former school/day‑care classroom and canopied outdoor patio
