Retail
For Sale
$2,050,000
7172 Melrose Avenue, Los Angeles, CA 90046
Positioned on Melrose Avenue between La Brea and Fairfax, among storefront retail and dining businesses.
Property Size3,380 SF
Days on Market25
Property Features for 7172 Melrose Avenue
General Information
Standard status
Active
Size
3,380 SF
Property subtype
COMMERCIAL
Building Details
Building Size
3,380 SF
Year Built
1947
Listing Agency:
Fred Leeds Asset Group Inc.
Listed By:
Chandler Rockwell · License #02080782
Source:
Velocityrealtysd
Added: Sep 3
Changed: Sep 25
Last Checked: Sep 26 at 3:25PM
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 Fred Leeds Asset Group Inc.
Investment Insights
Based on property information with market context.
This storefront property is situated along Melrose Avenue, within the retail stretch between La Brea and Fairfax. Nearby businesses include vintage and resale shops, streetwear and footwear retailers, cafes, and full-service restaurants.
Fairfax High School is at the western end of the corridor and hosts the Melrose Trading Post on Sundays. The surrounding areas named in the property information include Hancock Park, Larchmont, Beverly Grove, and the Fairfax District; West Hollywood and Beverly Hills are also identified as nearby.
Fairfax High School is at the western end of the corridor and hosts the Melrose Trading Post on Sundays. The surrounding areas named in the property information include Hancock Park, Larchmont, Beverly Grove, and the Fairfax District; West Hollywood and Beverly Hills are also identified as nearby.
Key Highlights
- Melrose Avenue location between La Brea and Fairfax
- Surrounding corridor businesses include vintage and resale shops, streetwear, footwear, cafes, and full‑service restaurants
- Fairfax High School anchors the corridor’s western end and hosts the Melrose Trading Post each Sunday
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
$78,440
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
3.83%
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%
$1,568,800
$1.6M
Cap Rate 7%
$1,120,571
$1.1M
Cap Rate 9%
$871,556
$871.6K
Market Conditions
NOI Build-Up for 3,380 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
$124.9K $36.96/SF
− Vacancy
−$12.9K −$3.81/SF
EGI
$112.1K $33.15/SF
− OpEx
−$33.6K −$9.95/SF
NOI
$78.4K $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%
$1,568,800
Cap Rate 7%
$1,120,571
Cap Rate 9%
$871,556
Alternative Uses
Best Use
Retail
$1.12M
$980.5K – $1.31M
NOI $78,440 @ 7.0% cap · market cap 3.83%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$68.48M
$59.92M – $79.89M
NOI $4,793,374 @ 7.0% cap · market cap 233.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
3,350
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 90046, CA
49,987
Population
31,929
Households
1.6
Avg Household Size
39
Median Age
63%
College-Educated
95%
High-School Grad
5.7 sq mi
ZIP Area
8,770
Density / Sq Mi
$94,259
Median Household Income
$65,607
Median Earnings
$2,204
Median Rent
$1,411,500
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Los Angeles, CA
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Frequently Asked Questions
What type of property is this?
Storefront property - Positioned on Melrose Avenue between La Brea and Fairfax, among storefront retail and dining businesses.
Where is this storefront property located?
The property is located at 7172 Melrose Avenue Los Angeles, CA.
What is the asking price?
The asking price for this property is $2,050,000.
What are key features of this property?
This property features: Melrose Avenue location between La Brea and Fairfax; Surrounding corridor businesses include vintage and resale shops, streetwear, footwear, cafes, and full‑service restaurants; Fairfax High School anchors the corridor’s western end and hosts the Melrose Trading Post each Sunday
