825 West Gardena Blvd
Mixed-Use | 7.1% CAP | 8,532 SqFt
Marketing description
Patel Cre Group is pleased to present 825 West Gardena Boulevard, a fully leased, two-story mixed-use asset in the heart of Gardena's North Gateway district. The Property pairs four ground-floor retail storefronts with direct Gardena Boulevard frontage and a 15-room hotel occupying the entire second floor — a diversified income stream across retail and hospitality uses rarely available at this price point in the South Bay.
All five units are occupied and producing income, delivering a 7.00% cap rate on actual in-place rents and a 10.70x gross rent multiplier at the asking price. The lease structure is built for passivity: the landlord is responsible only for property taxes, insurance, and exterior building maintenance, with no day-to-day operational involvement. Three units are on new leases with contractual annual rent increases; two units are month-to-month, creating immediate flexibility for rent repositioning or an owner-user acquisition with SBA financing potential.
With approximately 12.8% of rental upside to the broker's estimate of market, a new owner can grow NOI from $160,089 to $186,686 through routine lease rollover — pushing the yield to 8.12% on cost and supporting an implied stabilized value of approximately $2.67–$2.79 million. Durable cash flow, minimal landlord obligations, and embedded rent growth in a supply-constrained infill market make this a compelling acquisition for the passive investor, the value-add buyer, and the owner-user alike.
Investment highlights
- Strong In-Place Income — 7.1% Actual Cap Rate: $162,999 in current NOI against minimal landlord obligations. Income is in place and collected at close of escrow — not a projection.
- 12.8% Rental Upside & Loss-to-Lease Capture: In-place rents of $18,170/month versus $20,205/month at market. The salon unit alone is priced roughly 43% below market — a 76% rent increase available at rollover — offering an immediate value-add lever.
- Diversified Income — Retail + Hospitality: Four street-front retail units plus a 15-room hotel reduce single-tenant exposure and create two distinct revenue engines under one roof.
- Minimal Landlord Expenses, Passive Operation: Landlord pays only taxes, insurance, and exterior maintenance — a 23.3% expense ratio with no management burden, ideal for out-of-area and 1031 capital.
- Owner-User & SBA Financing Potential: Two month-to-month tenancies allow a qualified buyer to occupy a portion of the asset and access SBA financing with as little as 10% down.
- Attractive Basis at $269/SF: Well below South Bay replacement cost for two-story mixed-use construction with renovated hospitality interiors, providing margin of safety and room for appreciation.
- Supply-Constrained Infill Location: Minutes to the I-110/SR-91 interchange, Harbor Gateway Transit Center (0.9 mi), and the South Bay's aerospace and logistics employment base.
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Broker Selected Comps View More Comps
Property History
Similar Properties
Additional Information
Is there information that looks off?
