Los Angeles Commercial Property

[Daniel Kim]

Hello BiggerPockets Community,

I am a beginner investor that is trying to get started. I would greatly appreciate input from anyone. 

Right now, I need help analyzing a property. 

The property is located at 2424 San Pedro St., Los Angeles, CA 90011. 

Could someone help me step by step on how to get to a good purchase price? This is the information I found online. 

Building Size:
1,068 SF Property Type: Retail Property Sub-type: Restaurant Property Use Type: Investment No. Stories: 1 Tenancy: Single Year Built: 1962 Lot Size: 8,258 SF

[Will Barnard]

Commercial property value is based on the income so knowing what the financials are is necessary to calculate a value. Secondly, without even looking further, I can tell you that this is likely not a good deal simply based on the fact that it is a single tenant building with the tenant being in the largest failure rate of businesses (restaurants).

If you lose your one tenant, you are 100% vacant and in a market downturn! you hold the highest risk of this business going under. Just my opinion, but I would look for a building with a more diverse tenant base with an anchor business having the ability to survive a market downturn/recession.