Melrose Avenue Commercial
For Sale
Contact for pricing
Pending
6708-12 Melrose Avenue, Los Angeles, CA 90038
Commercial property on Melrose Avenue suitable for owner or investment.
Property Size6,560 SF
Days on Market1897
Property Features for 6708-12 Melrose Avenue
General Information
Standard status
Pending
Size
6,560 SF
Property subtype
Retail, Office
Investment Type
Owner/User
Building Details
Tenancy
Multi
Listing Agency:
Carolwood Realestate
Listed By:
Chris Mara · License #CA 00886282
Source:
Crexi
Added: Jun 14, 2021
Changed: Aug 8
Last Checked: Aug 23 at 6:29AM
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 Carolwood Realestate
Investment Insights
Based on property information with market context.
This commercial property, located on Melrose Avenue, presents an opportunity for either an owner-user or an investor. The property offers 6,560 square feet of space and is suitable for retail or office use.
Key Highlights
- Investment Opportunity
- Owner/User Opportunity
- Great
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
$155,710
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
3.66%
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%
$3,114,200
$3.1M
Cap Rate 7%
$2,224,429
$2.2M
Cap Rate 9%
$1,730,111
$1.7M
Market Conditions
NOI Build-Up for 6,560 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
$255.1K $38.88/SF
− Vacancy
−$47.4K −$7.23/SF
EGI
$207.6K $31.65/SF
− OpEx
−$51.9K −$7.91/SF
NOI
$155.7K $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%
$3,114,200
Cap Rate 7%
$2,224,429
Cap Rate 9%
$1,730,111
Alternative Uses
Best Use
Office B
$2.22M
$1.95M – $2.60M
NOI $155,710 @ 7.0% cap · market cap 3.66%
Second Best
Retail
$2.17M
$1.90M – $2.54M
NOI $152,239 @ 7.0% cap · market cap 3.58%
Theoretical Best
Multifamily LT 5
$132.90M
$116.29M – $155.05M
NOI $9,303,116 @ 7.0% cap · market cap 218.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,959
Businesses Nearby
Explore this area
Business Placement
Demographics for 90038, CA
27,414
Population
14,998
Households
1.8
Avg Household Size
36
Median Age
41%
College-Educated
76%
High-School Grad
1.5 sq mi
ZIP Area
18,276
Density / Sq Mi
$61,566
Median Household Income
$36,844
Median Earnings
$1,764
Median Rent
$1,089,200
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?
Retail property - Commercial property on Melrose Avenue suitable for owner or investment.
Where is this retail property located?
The property is located at 6708-12 Melrose Avenue Los Angeles, CA.
What is the asking price?
The asking price for this property is $4,250,000.
What are key features of this property?
This property features: Investment Opportunity; Owner/User Opportunity; Great
