Freeway-Adjacent Office/Flex User
For Sale
Contact for pricing
18 Centerpointe Dr, La Palma, CA 90623
High-image office/flex building with user flexibility and freeway access.
Property Size54,129 SF
Price / SF$265.02
Days on Market933
Property Features for 18 Centerpointe Dr
General Information
Standard status
Active
Size
54,129 SF
Class
B
Property subtype
Office
Investment Type
Owner/User
Building Details
Year Built
1986
Buildings
1
Tenancy
Single
Listing Agency:
CBRE - Orange County
Listed By:
Bryan Johnson · License #02018612
Source:
Crexi
Added: Feb 9, 2024
Changed: Aug 28
Last Checked: Aug 28 at 8:37PM
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 CBRE - Orange County
Investment Insights
Based on property information with market context.
This property presents an owner-user office/flex opportunity in a freeway-adjacent location, situated within a high-image, campus-environment setting. The low-rise asset is located within a campus environment featuring lush landscaping and recent multimillion-dollar common-area upgrades, including an association lounge space. The property offers convenient surface parking and excellent egress/ingress with direct freeway access. Currently built out as office space, the property features three ground-level doors that have been drywalled over. New ownership can easily transition the property to be more flex in nature by removing the drywall and creating warehouse space. Alternatively, an office user can maintain the property in its current condition or replace the ground-level doors with storefronts or glass rollup doors to further enhance the exterior light into the space. The property offers a unique larger 2-story office/flex owner-user opportunity in a market with very little office supply available for users. The property size is 54129 square feet.
Key Highlights
- Freeway‑adjacent location with excellent access and high visibility.
- Rare owner‑user opportunity for a larger 2‑story office/flex space.
- Flexibility to convert office space to flex/warehouse space with ground‑level doors.
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
$1,064,435
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
7.42%
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%
$21,288,700
$21.3M
Cap Rate 7%
$15,206,214
$15.2M
Cap Rate 9%
$11,827,056
$11.8M
Market Conditions
NOI Build-Up for 54,129 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
$1.62M $29.88/SF
− Vacancy
−$198.1K −$3.66/SF
EGI
$1.42M $26.22/SF
− OpEx
−$354.8K −$6.55/SF
NOI
$1.06M $19.66/SF
Area
Orange County, CA
Vacancy
12.25%
Lease Rate
$29.88 /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%
$21,288,700
Cap Rate 7%
$15,206,214
Cap Rate 9%
$11,827,056
Alternative Uses
Best Use
Office B
$15.21M
$13.31M – $17.74M
NOI $1,064,435 @ 7.0% cap · market cap 7.42%
Second Best
Flex RnD
$14.07M
$12.31M – $16.41M
NOI $984,845 @ 7.0% cap · market cap 6.87%
Theoretical Best
Office A
$18.18M
$15.91M – $21.21M
NOI $1,272,659 @ 7.0% cap · market cap 8.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,220
Businesses Nearby
Explore this area
Business Placement
Demographics for 90623, CA
15,906
Population
5,191
Households
3.1
Avg Household Size
44
Median Age
49%
College-Educated
94%
High-School Grad
1.8 sq mi
ZIP Area
8,837
Density / Sq Mi
$112,366
Median Household Income
$59,061
Median Earnings
$2,224
Median Rent
$920,200
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 building - High-image office/flex building with user flexibility and freeway access.
Where is this office building located?
The property is located at 18 Centerpointe Dr La Palma, CA.
What is the asking price?
The asking price for this property is $14,345,000.
What are key features of this property?
This property features: Freeway‑adjacent location with excellent access and high visibility.; Rare owner‑user opportunity for a larger 2‑story office/flex space.; Flexibility to convert office space to flex/warehouse space with ground‑level doors.
