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THE STORY The property is 100% occupied with three tenants generating $21,440/month in gross income. All three tenants — Kidz Kingdom, Van Bakery, and SimpleFloors — have been operating at this location since before 2008. These are seasoned operators with over 15 years of continuous tenancy at this address. Van Bakery has a fully built-out commercial kitchen. Two of the three tenants are month-to-month; Van Bakery holds an active lease through 3/1/2028. All rents are below market and are structured as gross leases — the owner is currently absorbing all operating expenses. Lessor reserves the right to pass through NNN/operating expenses to tenants per the leases, representing additional income upside for a new owner. Seller financing and Loan assumption may be available — contact broker for details. Two of the three tenants are month-to-month so an owner-user to occupy 51% or more of the building and access SBA financing with as little as 10% down. For an investor, the property generates day-one income at 100% occupancy with an in-place cap rate of 3.48%* and a proforma cap rate of 5.42%‡ if the investor passes 100% of operating expenses to tenants (NNN) following a $100K renovation plan. |
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Owner-User / SBA Play
—Occupy Kidz Kingdom (5,294 SF / 58.82%) and qualify for SBA 504 or 7(a) financing with as little as 10% down ($419,500). Remaining two tenants generate $9,540/month in rental income day one. |
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Investor / 1031 Exchange—100% occupied generating $257,280/year in gross income. In-place cap rate of 3.48%* based on 2025 P&L income and expenses (excludes one-time electrical repair and misc. rental expense). Seller financing/Loan Assumption may be available — contact broker for seller finance terms and Seller’s current mortgage. |
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Two of the three tenants are currently month-to-month, creating a clear path for an owner-user to occupy 51% or more of the building. The property is SBA 504, SBA 7(a) and Conventional Owner/User eligible. Below are two illustrative scenarios based on which suite an owner-user occupies. |
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Investor scenarios are illustrative. Actual results depend on lease terms, tenant negotiations, and market conditions. Buyers should conduct independent due diligence. * In-place cap rate of 3.48% based on 2025 P&L gross income of $244,880 less adjusted operating expenses of $98,905. Excludes one-time electrical repair of $25,000 and miscellaneous rental expense of $8,804. Uses proforma property tax of $52,437.50 and insurance of $10,449. NOI of $145,975 divided by sale price of $4,195,000. ‡ NNN pass-through cap rate of 5.42% assumes owner passes 100% of operating expenses to tenants following a $100,000 renovation. Gross income of $244,880 less 5% vacancy reserve ($12,244) yields NOI of $232,636, divided by adjusted basis of $4,295,000 (sale price plus $100K renovation). Illustrative only; actual results depend on lease renegotiation and tenant agreement. |
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Advisory | Valuation | Consulting | Investment | Property Management |
NAI Capital Commercial Inc.
15821 Ventura Blvd., Suite #320, Encino, CA 91436
818.905.2400 | naicapital.com |
© NAI Capital Commercial, Inc. Content in this document may include AI generated or altered text, images and/or analysis. No warranty, express or implied, is made as to the accuracy of the information contained herein. This information is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and is subject to any special listing conditions imposed by our principals. Cooperating brokers, buyers, tenants and other parties who receive this document should not rely on it, but should use it as a starting point of analysis, and should independently confirm the accuracy of the information contained herein through a due diligence review of the books, records, files and documents that constitute reliable sources of the information described herein. Unedited images viewable at naicapital.com | Cal DRE Lic #02130474 |
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