Mixed-Use Building in Panorama
For Sale
Contact for pricing
Pending
8741-8751 Van Nuys, Panorama City, CA 91402
15,046 SF building suitable for medical or apartment conversion.
Property Size15,046 SF
Lot Size0.59 Acres
Days on Market724
Property Features for 8741-8751 Van Nuys
General Information
Standard status
Pending
Size
15,046 SF
Total Parking Spaces
100
Lot size
0.59 Acres
Property subtype
Multifamily, Office, Land
Building Details
Units
240
Listing Agency:
Commercial Real Estate Investments
Listed By:
Karl Niehaus · License #CA 01450751
(310) 826-8200
Source:
Crexi
Added: Sep 12, 2024
Changed: Aug 24
Last Checked: Aug 28 at 9:12PM
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 Commercial Real Estate Investments
Investment Insights
Based on property information with market context.
The property at 8741-8747 Van Nuys presents an opportunity to acquire an existing 15,046 square foot building that can be converted into a medical office or developed into apartments. An additional 9,155 square foot lot provides abundant parking and supports medical uses. The location offers convenient access to amenities, including two supermarkets within one block, as well as a Walmart, malls, and retailers within three blocks. Transportation options are readily available, with a new rail station under construction three blocks away, providing connections to the Orange, Red, and Metro Link rail lines. Numerous bus lines and easy access to the 405, 5, 118, and 170 freeways further enhance accessibility. The property is situated within a mile of seven schools and just over a mile from the Kaiser Permanente Medical Center. The surrounding area has a high housing demand, with over 73,000 residents within one mile and 175,000 residents within two miles. The average household income is over $71,000 within one mile and $82,000 within two miles. The property is located on a 16,774 square foot land, with an additional 9,155 square foot lot available.
Key Highlights
- Potential for medical office conversion or apartment development of an existing 15,046 SF building.
- Additional 9,155 SF lot provides abundant parking and qualifies the property for medical uses.
- Excellent location** with walking access to supermarkets, Walmart, malls, and retailers.
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
$304,682
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
6.89%
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%
$6,093,640
$6.1M
Cap Rate 7%
$4,352,600
$4.4M
Cap Rate 9%
$3,385,356
$3.4M
Market Conditions
NOI Build-Up for 15,046 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
$541.7K $36.00/SF
− Vacancy
−$54.2K −$3.60/SF
EGI
$487.5K $32.40/SF
− OpEx
−$182.8K −$12.15/SF
NOI
$304.7K $20.25/SF
Area
Los Angeles, CA
Vacancy
10.00%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
37.50%
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%
$6,093,640
Cap Rate 7%
$4,352,600
Cap Rate 9%
$3,385,356
Alternative Uses
Best Use
Mixed Use
$4.35M
$3.81M – $5.08M
NOI $304,682 @ 7.0% cap · market cap 6.89%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$304.82M
$266.72M – $355.63M
NOI $21,337,605 @ 7.0% cap · market cap 482.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,992
Businesses Nearby
Explore this area
Business Placement
Demographics for 91402, CA
70,140
Population
20,570
Households
3.4
Avg Household Size
35
Median Age
19%
College-Educated
67%
High-School Grad
3.7 sq mi
ZIP Area
18,957
Density / Sq Mi
$56,369
Median Household Income
$31,452
Median Earnings
$1,607
Median Rent
$586,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 15,046 SF building suitable for medical or apartment conversion.
Where is this mixed-use property located?
The property is located at 8741-8751 Van Nuys Panorama City, CA.
What is the asking price?
The asking price for this property is $4,425,000.
What are key features of this property?
This property features: Potential for medical office conversion or apartment development of an existing 15,046 SF building.; Additional 9,155 SF lot provides **abundant parking** and qualifies the property for medical uses.; Excellent location** with walking access to supermarkets, Walmart, malls, and retailers.
