Industrial Flex
For Sale
$2,500,000
7231 Hinds Ave, North Hollywood, CA 91605
M2-1 zoning, full HVAC, and gated loading access support varied commercial operations.
Property Size6,273 SF
Lot Size0.15 Acres
Price / SF$398.53
Days on Market17
Property Features for 7231 Hinds Ave
General Information
Standard status
Active
Size
6,273 SF
Total Parking Spaces
11
Lot size
0.15 Acres
Property subtype
Office Warehouse
Zoning
M2-1
Warehouse & Industrial
Clear Height
14 ft
Drive-In Doors
1
Power
400 amps
Three-Phase Power
Yes
Sprinkler System
Yes
Conditioned Warehouse
Yes
Additional Details
Fenced Yard
Yes
Amenities
Rare Owner/User Industrial Flex Opportunity: ±6,273 SF industrial building situated on a 0.15-acre M2-1 zoned parcel
Modern Construction: Constructed in 1992 with durable masonry CMU construction on the ground floor and steel/wood-frame stucco construction on the second floor.
Functional Warehouse Improvements: Features approximately 14' clear height on the ground floor, 400-amp 120/240V 3-phase power, and a ground-level loading door.
Functional Warehouse Improvements: Features approximately 14' clear height on the ground floor, 400-amp 120/240V 3-phase power, and a ground-level loading door Fully Air-Conditioned Facility: Climate-controlled throughout, making the property suitable for manufacturing, production, technology, showroom, R&D, light industrial, and other temperature-sensitive operations.
Fully Fire Sprinklered: Equipped with a centrally monitored fire sprinkler system, providing enhanced life-safety infrastructure and operational functionality.
Secure Gated Parking & Loading Area: Large concrete yard area with secure gated access and approximately 11 off-street parking spaces.
Flexible Zoning & Potential AB 2097 Benefits: M2-1 zoning accommodates a broad range of industrial and commercial uses. The property also qualifies for the benefits of California AB 2097, potentially allowing certain changes of use without the need to add on-site parking.
Potential Pre-ICO Cannabis Licensing Opportunity: A valuable Pre-ICO cultivation license (under 5,000 SF canopy) and distribution license may be available for purchase separately from the real estate, creating an attractive opportunity for qualified operators seeking an established licensing pathway. Contact listing agents for additional details.
Building Details
Building Size
6,273 SF
Year Built
1992
Buildings
1
Stories
2
Construction
masonry
Listing Agency:
Marcus & Millichap - Encino
(818) 212-2744
Listed By:
Marty Agnew · License #License(s): CA: 01339034
(818) 212-2744
Source:
Marcusmillichap
Added: Aug 14
Changed: Aug 29
Last Checked: Aug 29 at 2:34PM
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 Marcus & Millichap - Encino
Investment Insights
Based on property information with market context.
This 6,273-square-foot flex property was built in 1992 on a 0.15-acre M2-1 parcel. The two-level structure combines masonry CMU construction at the lower level with steel and wood framing above, finished with stucco. Functional improvements include approximately 14-foot clear height on the ground floor, a ground-level loading door, full-building HVAC, 400-amp 120/240V 3-phase power, and fire sprinklers connected to a recently upgraded central monitoring system. A gated concrete area provides loading space and approximately 11 off-street parking spaces.
The Certificate of Occupancy was changed from Warehouse/Office to Indoor Nursery (Hydroponic Agricultural Enterprise), while the M2-1 designation supports a broad range of industrial and commercial uses. The property may also qualify under California AB 2097 for certain parking-intensive uses without added parking construction; buyers should independently confirm applicable uses, parking requirements, and regulations. The East San Fernando Valley setting provides access to North Hollywood, Burbank, Sun Valley, Van Nuys, and the greater Los Angeles region.
The Certificate of Occupancy was changed from Warehouse/Office to Indoor Nursery (Hydroponic Agricultural Enterprise), while the M2-1 designation supports a broad range of industrial and commercial uses. The property may also qualify under California AB 2097 for certain parking-intensive uses without added parking construction; buyers should independently confirm applicable uses, parking requirements, and regulations. The East San Fernando Valley setting provides access to North Hollywood, Burbank, Sun Valley, Van Nuys, and the greater Los Angeles region.
Key Highlights
- 6,273‑square‑foot flex building on a 0.15‑acre M2‑1 parcel
- Approximately 14‑foot clear height on the ground floor
- 400‑amp 120/240V 3‑phase power
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
$81,624
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
3.26%
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%
$1,632,480
$1.6M
Cap Rate 7%
$1,166,057
$1.2M
Cap Rate 9%
$906,933
$906.9K
Market Conditions
NOI Build-Up for 6,273 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
$100.9K $16.08/SF
− Vacancy
−$4.8K −$0.77/SF
EGI
$96.0K $15.31/SF
− OpEx
−$14.4K −$2.30/SF
NOI
$81.6K $13.01/SF
Area
Los Angeles County, CA
Vacancy
4.80%
Lease Rate
$16.08 /SF/Yr
Expense Ratio
15.00%
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%
$1,632,480
Cap Rate 7%
$1,166,057
Cap Rate 9%
$906,933
Alternative Uses
Best Use
Warehouse
$1.17M
$1.02M – $1.36M
NOI $81,624 @ 7.0% cap · market cap 3.26%
Second Best
Industrial
$1.05M
$916.3K – $1.22M
NOI $73,307 @ 7.0% cap · market cap 2.93%
Theoretical Best
Office A
$3.36M
$2.94M – $3.92M
NOI $235,098 @ 7.0% cap · market cap 9.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14 ft
Clear height
1
Drive-in doors
Yes
Sprinkler system
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,513
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 91605, CA
54,341
Population
17,206
Households
3.2
Avg Household Size
36
Median Age
22%
College-Educated
71%
High-School Grad
5.4 sq mi
ZIP Area
10,063
Density / Sq Mi
$64,539
Median Household Income
$32,751
Median Earnings
$1,736
Median Rent
$729,900
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - M2-1 zoning, full HVAC, and gated loading access support varied commercial operations.
Where is this flex space located?
The property is located at 7231 Hinds Ave North Hollywood, CA.
What is the asking price?
The asking price for this property is $2,500,000.
What are key features of this property?
This property features: 6,273‑square‑foot flex building on a 0.15‑acre M2‑1 parcel; Approximately 14‑foot clear height on the ground floor; 400‑amp 120/240V 3‑phase power
