San Pedro Office Building
For Sale
Contact for pricing
805 S Gaffey St, Los Angeles, CA 90731
Prime San Pedro commercial property with high visibility and retail potential.
Property Size2,226 SF
Price / SF$426.33
Days on Market738
Property Features for 805 S Gaffey St
General Information
Standard status
Active
Size
2,226 SF
Class
C
Property subtype
Office
Zoning
LAC2
Investment Type
Owner/User
Building Details
Year Built
1959
Year Renovated
2019
Buildings
1
Stories
1
Units
3
Listing Agency:
Caskey Commercial Real Estate Group
(808) 990-8452
Listed By:
Daniel Yodice · License #CA 02043962
Source:
Crexi
Added: Aug 1, 2024
Changed: Aug 8
Last Checked: Aug 8 at 12:31PM
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 Caskey Commercial Real Estate Group
Investment Insights
Based on property information with market context.
Located in a prime location in San Pedro, this mid-century style office building offers an investment opportunity with high visibility on Gaffey Street, a major commercial corridor near freeways and the new West Harbor waterfront development. Neighboring high-traffic tenants include Starbucks, 7-11, CVS, and the Sandwich Saloon. The recently remodeled space features a contemporary design suitable for immediate use, making it an ideal location for professional offices with retail potential. The property totals 2226 square feet. Unit 805 includes a large reception area, three private office spaces with natural light, a large storage room, two remodeled restrooms, and rear parking access, along with access to a central courtyard shared with Unit 807. Unit 807 features a reception area, a large private office, a remodeled restroom, and rear parking access. Unit 809 is an open workspace with large windows, a storage closet, and a remodeled restroom. This property is suitable for both commercial investors and owner-users.
Key Highlights
- Prime location on high‑visibility Gaffey Street in San Pedro, a major commercial corridor.
- Close proximity to freeways and the new West Harbor waterfront development.
- Recently remodeled with a contemporary design, ready for immediate use.
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
$52,837
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
5.57%
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%
$1,056,740
$1.1M
Cap Rate 7%
$754,814
$754.8K
Cap Rate 9%
$587,078
$587.1K
Market Conditions
NOI Build-Up for 2,226 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
$86.5K $38.88/SF
− Vacancy
−$16.1K −$7.23/SF
EGI
$70.4K $31.65/SF
− OpEx
−$17.6K −$7.91/SF
NOI
$52.8K $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%
$1,056,740
Cap Rate 7%
$754,814
Cap Rate 9%
$587,078
Alternative Uses
Best Use
Office B
$754.8K
$660.5K – $880.6K
NOI $52,837 @ 7.0% cap · market cap 5.57%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$45.10M
$39.46M – $52.61M
NOI $3,156,820 @ 7.0% cap · market cap 332.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,206
Businesses Nearby
Explore this area
Business Placement
Demographics for 90731, CA
61,270
Population
24,477
Households
2.5
Avg Household Size
38
Median Age
25%
College-Educated
81%
High-School Grad
9.3 sq mi
ZIP Area
6,588
Density / Sq Mi
$71,936
Median Household Income
$41,324
Median Earnings
$1,645
Median Rent
$808,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Prime San Pedro commercial property with high visibility and retail potential.
Where is this office units located?
The property is located at 805 S Gaffey St Los Angeles, CA.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: Prime location on high‑visibility Gaffey Street in San Pedro, a major commercial corridor.; Close proximity to freeways and the new West Harbor waterfront development.; Recently remodeled with a contemporary design, ready for immediate use.
