Chinatown Building: Owner-User
For Sale
Contact for pricing
646 N Spring St, Los Angeles, CA 90012
Two-story, 19,625 SF building in Chinatown near Downtown Los Angeles.
Property Size19,625 SF
Lot Size0.32 Acres
Price / SF$453.50
Days on Market788
Property Features for 646 N Spring St
General Information
Standard status
Active
Size
19,625 SF
Lot size
0.32 Acres
Property subtype
Office
Zoning
[DM2-G1-5] [CX2-FA] [CPIO]
Listing Agency:
Industry Partners
(310) 966-4383
Listed By:
Elliot Schwartz · License #CA 02020686
Source:
Crexi
Added: Jun 13, 2024
Changed: Aug 8
Last Checked: May 12 at 11:16PM
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 Industry Partners
Investment Insights
Based on property information with market context.
Located in Chinatown, one parcel north of W Cesar E Chavez Avenue and less than a mile from downtown Los Angeles, the property at 646-654 N Spring Street presents an opportunity for investors or owner-users. The two-story building encompasses approximately 19,625 square feet on a lot of approximately 13,772 square feet, zoned LAC2. Currently, the building is 64% occupied by two tenants. The property features historic brick timber construction, 13-foot high ceilings, and steel-framed doors and windows. The location offers access to a diverse culinary scene, including restaurants such as Majordomo, Apothéke, and Howlin’ Ray’s. It is within walking distance of Union Station and the Metro Gold Line, and near the Arts District, Silver Lake, and Little Tokyo. The property has a walkscore of 94/100. Easy access to Sunset Blvd, and the 101 & 110 Freeways.
Key Highlights
- Investor/Owner‑User Opportunity: 64% occupied building provides immediate income potential.
- Prime Chinatown Location: Near Downtown LA, Union Station, and more!
- LAC2 Zoning: Offers flexible usage options.
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
$465,824
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
5.23%
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%
$9,316,480
$9.3M
Cap Rate 7%
$6,654,629
$6.7M
Cap Rate 9%
$5,175,822
$5.2M
Market Conditions
NOI Build-Up for 19,625 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
$763.0K $38.88/SF
− Vacancy
−$141.9K −$7.23/SF
EGI
$621.1K $31.65/SF
− OpEx
−$155.3K −$7.91/SF
NOI
$465.8K $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%
$9,316,480
Cap Rate 7%
$6,654,629
Cap Rate 9%
$5,175,822
Alternative Uses
Best Use
Office B
$6.65M
$5.82M – $7.76M
NOI $465,824 @ 7.0% cap · market cap 5.23%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$397.59M
$347.89M – $463.86M
NOI $27,831,350 @ 7.0% cap · market cap 312.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,347
Businesses Nearby
Explore this area
Business Placement
Demographics for 90012, CA
33,851
Population
16,541
Households
2
Avg Household Size
37
Median Age
39%
College-Educated
77%
High-School Grad
3.6 sq mi
ZIP Area
9,403
Density / Sq Mi
$67,635
Median Household Income
$44,901
Median Earnings
$2,116
Median Rent
$686,400
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 - Two-story, 19,625 SF building in Chinatown near Downtown Los Angeles.
Where is this office building located?
The property is located at 646 N Spring St Los Angeles, CA.
What is the asking price?
The asking price for this property is $8,900,000.
What are key features of this property?
This property features: Investor/Owner‑User Opportunity: 64% occupied building provides immediate income potential.; Prime Chinatown Location: Near Downtown LA, Union Station, and more!; LAC2 Zoning: Offers flexible usage options.
