Retail Building on Pacific
For Sale
$1,195,000
Pending
705 S Pacific Ave, San Pedro, CA 90066
Three-unit retail building in San Pedro's PBID.
Property Size4,550 SF
Days on Market169
Property Features for 705 S Pacific Ave
General Information
Standard status
Pending
Size
4,550 SF
Listing Agency:
Century 21 Coastal Properties
(310) 749-1435
Listed By:
Mitch Graves · License #01260315
(310) 749-1435
Source:
Exprealty
Added: Mar 9
Changed: Aug 23
Last Checked: Jul 31 at 4:25PM
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 Century 21 Coastal Properties
Investment Insights
Based on property information with market context.
This three-unit retail building features 90 feet of frontage on Pacific Avenue in San Pedro. Situated in the heart of the San Pedro Property Business Initiative District (PBID), this property presents an investment opportunity to rehabilitate and capitalize on the revitalization of the 6th & 7th Street downtown areas, the Warner Grand Theatre, the new West Harbor waterfront development, and multiple new high-end apartment units. The current configuration includes an approximately 1650-square-foot barber shop, an approximately 2300-square-foot pawn shop, and an approximately 4550-square-foot secondhand store with an arcade entrance that could be divided into two separate units. All units are currently under month-to-month NNN leases, offering potential for increased rental income upon rehabilitation.
Key Highlights
- Prime location on historic Pacific Ave in the San Pedro Property Business Initiative District (PBID).
- Significant rent upside potential after rehabilitation.
- Excellent investment opportunity due to the revitalization of the 6th & 7th St downtown areas.
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
$105,593
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
8.84%
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%
$2,111,860
$2.1M
Cap Rate 7%
$1,508,471
$1.5M
Cap Rate 9%
$1,173,256
$1.2M
Market Conditions
NOI Build-Up for 4,550 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
$168.2K $36.96/SF
− Vacancy
−$17.3K −$3.81/SF
EGI
$150.8K $33.15/SF
− OpEx
−$45.3K −$9.95/SF
NOI
$105.6K $23.21/SF
Area
Los Angeles, CA
Vacancy
10.30%
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%
$2,111,860
Cap Rate 7%
$1,508,471
Cap Rate 9%
$1,173,256
Alternative Uses
Best Use
Retail
$1.51M
$1.32M – $1.76M
NOI $105,593 @ 7.0% cap · market cap 8.84%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$92.18M
$80.66M – $107.54M
NOI $6,452,619 @ 7.0% cap · market cap 539.97%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,746
Businesses Nearby
22k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 54%
Shops & Services 21%
Apparel 20%
Beauty & Spa 5%
Wells Fargo
Shops & Services
4,559 visits/mo
0.4 miles
Jeni's Splendid Ice Creams
Dining
3,778 visits/mo
0.4 miles
rag & bone
Apparel
3,613 visits/mo
0.3 miles
Cafe Gratitude
Dining
3,551 visits/mo
0.4 miles
Blue Bottle Coffee
Dining
2,094 visits/mo
0.3 miles
Demographics for 90066, CA
55,304
Population
26,591
Households
2.1
Avg Household Size
38
Median Age
61%
College-Educated
92%
High-School Grad
4.8 sq mi
ZIP Area
11,522
Density / Sq Mi
$107,786
Median Household Income
$67,298
Median Earnings
$2,211
Median Rent
$1,636,600
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 - Three-unit retail building in San Pedro's PBID.
Where is this storefront property located?
The property is located at 705 S Pacific Ave San Pedro, CA.
What is the asking price?
The asking price for this property is $1,195,000.
What are key features of this property?
This property features: Prime location on historic Pacific Ave in the San Pedro Property Business Initiative District (PBID).; Significant rent upside potential after rehabilitation.; Excellent investment opportunity due to the revitalization of the 6th & 7th St downtown areas.
