

1031 Exchange I NNN Sale-Leaseback I Owner-User
Absolute NNN Sale-Leaseback | 4.75% Cap | Fully Replaced Roof (2024)
Marketing description
EXECUTIVE INVESTMENT SUMMARY
REeBroker Group is pleased to exclusively present for sale a premium, single-tenant industrial warehouse located at 936 E. 31st St, Los Angeles, CA 90011. This high-utility asset features an exceptional, turn-key Absolute NNN Sale-Leaseback opportunity, meticulously structured for institutional investors and 1031 exchange buyers seeking stable, predictable, and 100% passive cash flow in a core Southern California infill market.
Concurrently with the close of escrow, the current owner-user—a highly successful clothing business with an established 20+ year operational track record at this location—will execute a brand-new 3-Year initial lease term plus one (1) 3-Year renewal option. The lease features strong annual escalations between 3.0% and 4.0%, serving as a robust compounding hedge against inflation.
ASSET HIGHLIGHTS & MINIMAL CAPEX EXPOSURE
Constructed in 2002, the property consists of a 28,450 SF premium concrete tilt-up building situated on a generous 43,000 SF parcel (~0.96 Acres).
The single largest risk for industrial landlords—near-term roofing and structural expenses—has been completely mitigated. The Seller fully replaced the entire roof in 2024, offering the incoming investor immediate protection of their yield and an asset requiring zero near-term capital expenditures (CapEx).
PREMIUM INFILL LOGISTICS SPECIFICATIONS
- Clear Height: High-utility 24’ – 26’ clearance maximizing cubic storage capacity.
- Power Supply: Heavy 1,200 Amps, 3-Phase power, ideal for modern industrial demands.
- Loading & Access: Secure, fully fenced parking lot accommodating 30+ dedicated parking stalls.
- Core Location: Strategically positioned just 5 minutes from the LA Fashion District, offering unparalleled proximity to major transportation arteries, the Port of Long Beach, and Los Angeles International Airport (LAX).
TRUE PASSIVE INCOME STRUCTURE:
Under the Absolute NNN structure, the tenant maintains full responsibility for all property taxes (1.25%), insurance, utilities, and common area maintenance (CAM). With a Net Operating Income (NOI) of $451,000 and an initial Cap Rate of 4.75%, this property represents a rare opportunity to acquire a pristine, zero-landlord-responsibility asset in one of the tightest and most competitive logistics markets in the nation.
Investment highlights
Key Investment Highlights
Minimal Capex Exposure (New Roof): The newly replaced roof in 2024 eliminates the single largest capital expenditure risk typically associated with industrial investments, protecting the buyer's yield.
Passive NNN Cash Flow: The tenant handles property taxes, insurance, and day-to-day maintenance, ensuring an efficient and predictable cash flow structure.
From 2017 Operated Location: Immediate operational stability with zero transition or vacancy risk, backed by a tenant, Current Owner-User (Over 20 Years of Clothing Business Operation)
Premium Infill LA Logistics Specs: High-utility 2002 concrete tilt-up construction featuring 24' - 26' clear heights, 30+ dedicated parking stalls, and heavy 1,200 Amp Power.
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