The Location
176 N La Brea Ave sits at the spine of the Beverly/La Brea corridor, one of the more genuinely walkable commercial stretches in central Los Angeles. Pedestrian score is 80. La Brea north of Beverly has a distinct character: art galleries, design showrooms, fashion retail.
The Setup
Three-story, 9,780 SF wood-frame storefront retail/office building on a 5,271 SF lot. Built 1927.
The Math the Broker Is Pitching
There is no broker proforma on record. No cap rate. No GRM. No NOI. No T-12. No rent roll.
No unit mix (this is a commercial building, so that is expected).
What exists is one number: $5,000,000, or $511/SF.
Assumptions:
| Scenario | Assumed Rent/SF/Yr | Gross Revenue | NOI at 40% Expense | Implied CAP |
|---|---|---|---|---|
| CoStar Market Rent (subject) | $31.68 | $309,830 | $185,898 | 3.72% |
| CoStar Market Rent (submarket) | $68.78 | $672,872 | $403,723 | 8.07% |
| Midpoint assumption | $45.00 | $440,100 | $264,060 | 5.28% |
What an Operator Sees
Full ask of $5M.
306 days.
A 1927.
I don't have the income.
I don't have the tenant.
I'm keeping the data because I find it interesting that they got $511/SF on a 5,271 SF Lot with limited Parking.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
Know one other LA owner who'd want this deal? Forward this — reply with their email and I'll add them.
Property and transaction data: CoStar Research.
Speculation
The buyer paid $5.0M flat. No discount.
Speculation, and it is only speculation until someone provides the rent roll: Reuven Wolf paid full ask because he either had a specific tenant use in mind (owner-user or pre-leased), or he underwrote this on replacement cost and location rather than current income. At $511/SF for a renovated 1927 building on La Brea, that is a defensible basis for a long-term holder who believes in the corridor. It is not a cash-flow-day-one purchase at any honest rent assumption.