Vermont Knolls Potential Conversion
For Sale
$1,600,000
8301 S Figueroa St, Los Angeles, CA 90003
Remodeled South Los Angeles property suitable for various uses.
Property Size5,002 SF
Price / SF$319.87
Days on Market201
Property Features for 8301 S Figueroa St
General Information
Standard status
Active
Size
5,002 SF
Property subtype
Multifamily
Building Details
Building Size
5,002 SF
Year Built
1964
Listing Agency:
Sperry Commercial Global Affiliates Irvine
(310) 704-9109
Listed By:
Luis Vazquez · License #CalDRE #00841513
Source:
Sperrycga
Added: Jan 27
Changed: Aug 8
Last Checked: Aug 16 at 3:50AM
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 Sperry Commercial Global Affiliates Irvine
Investment Insights
Based on property information with market context.
Located in the Vermont Knolls area of South Los Angeles, this property, formerly the New Bay Motel, presents a conversion opportunity. The property is bounded by Florence Avenue, the 110 Freeway, Manchester Boulevard, and Normandie Avenue, offering easy access to the 110 Freeway. The building was initially a 21-room motel with 21 bathrooms, but a previous tenant converted the interior into 7 large rooms with a community bathroom/shower area containing 6 individual shower areas, 6 sinks, and 6 toilet stalls. Each of the 7 rooms has been remodeled with wood vinyl floors and paint. The property has street exposure on Figueroa. Exterior perimeter gates have been installed, and a security guard is present during the evenings. The property is well-positioned for conversion to a higher and better use and is suitable for permanent housing, a clinic, medical or dental office, school, or hospital. The property sits on a highly visible corner lot. The building was remodeled in 2025.
Key Highlights
- Highly visible corner lot location with excellent street exposure on Figueroa, offering potential for various uses.
- Remodeled in 2025 and ready for potential conversion, potentially 'As Is', reducing immediate renovation costs.
- Several potential uses including permanent housing, clinic, medical or dental, school, or hospital, offering flexibility for investors.
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
$93,781
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
5.86%
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%
$1,875,620
$1.9M
Cap Rate 7%
$1,339,729
$1.3M
Cap Rate 9%
$1,042,011
$1.0M
Market Conditions
NOI Build-Up for 5,002 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
$168.1K $33.60/SF
− Vacancy
−$11.8K −$2.35/SF
EGI
$156.3K $31.25/SF
− OpEx
−$62.5K −$12.50/SF
NOI
$93.8K $18.75/SF
Area
ZIP 90003
Vacancy
7.00%
Lease Rate
$33.60 /SF/Yr
Expense Ratio
40.00%
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%
$1,875,620
Cap Rate 7%
$1,339,729
Cap Rate 9%
$1,042,011
Alternative Uses
Best Use
Healthcare Medical
$1.34M
$1.17M – $1.56M
NOI $93,781 @ 7.0% cap · market cap 5.86%
Second Best
—
—
no second resolved use
Theoretical Best
Apartment 5plus
$88.43M
$77.38M – $103.17M
NOI $6,190,245 @ 7.0% cap · market cap 386.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,534
Businesses Nearby
Explore this area
Business Placement
Demographics for 90003, CA
72,764
Population
18,349
Households
4
Avg Household Size
30
Median Age
7%
College-Educated
53%
High-School Grad
3.6 sq mi
ZIP Area
20,212
Density / Sq Mi
$54,781
Median Household Income
$30,132
Median Earnings
$1,515
Median Rent
$547,600
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical space - Remodeled South Los Angeles property suitable for various uses.
Where is this medical space located?
The property is located at 8301 S Figueroa St Los Angeles, CA.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Highly visible corner lot location with excellent street exposure on Figueroa, offering potential for various uses.; Remodeled in 2025 and ready for potential conversion, potentially 'As Is', reducing immediate renovation costs.; Several potential uses including permanent housing, clinic, medical or dental, school, or hospital, offering flexibility for investors.
