The San Pedro Compound

Highlights:

• Value Add
• 1,206 Finished Basement Not Included in GBA For A total of 7,194 Usable Square Feet
• SBA Financing for Owner User
• All Uits Deliver Vacant

Description:

Prime Corner Mixed-Use Investment | Immediate Value-Add Opportunity Secure a high-visibility footpri
Marketing description
THE SAN PEDRO PROJECT | Value-Add Mixed-Use | $450K+ Equity Opportunity
THE OPPORTUNITY
Lawson-Hayes Realty is pleased to present 10401 S. San Pedro Street, an aggressively priced mixed-use corner asset in the high-demand 90003 zip code. Featuring a ±1,678 SF retail storefront and three (3) residential units, this ±7,400 total usable SF property is a premier "blank canvas" for a value-add investor or an owner-user seeking a high-equity position.

THE VISION: AN EQUITY PLAY
Priced at $1,925,000, the asset is positioned significantly below the $2.38M – $2.7M Stabilized Market Value. The listing offers a clear path to forced appreciation:

Residential Modernization: Renovate the 3 residential units to capture $2,600+ market rents (consistent with 90003 comps for 2026).

Retail/Basement Optimization: Leverage the ±1,206 SF finished basement as creative production space to maximize commercial rental yield.

Curb Appeal & Branding: High-visibility corner lot with massive signage potential on a primary LA corridor.

THE BUSINESS: "THE T-SHIRT SPOT" (Available Separately)
Available for $150,000 (MLS #SR25245267), this turn-key apparel business makes the property:

SBA 504/7(a) Eligible: Perfect for owner-operators to secure 90% financing with low down payments.

Versatile Delivery: Retail and one residential unit can be delivered VACANT at COE, allowing for immediate repositioning or owner-occupancy.

INVESTMENT HIGHLIGHTS
Massive Functional Space: 6,194 SF GBA + 1,206 SF Basement = ±7,400 Usable SF.

Unbeatable Basis: Priced at only $260/SF (Total Usable)—nearly 50% below 2026 replacement costs.

Proven Market Yield: Pro-Forma NOI of $104,136 provides a rock-solid 5.41% Cap Rate—outperforming the LA market average.

RSO Upside: Built in 1934; the significant "Loss-to-Lease" creates a quantifiable path to wealth through stabilization.

FINANCIALS & DUE DILIGENCE
A full Offering Memorandum (OM)—including the $104K Pro-Forma model and itemized renovation budget—is available upon request.

SUBMIT SUBJECT TO INSPECTION. Buyer to verify all square footage, unit mix, and zoning (LARD2).

Investment highlights
Massive Functional Space: 6,194 SF GBA plus a 1,206 SF finished basement for a total of ±7,400 usable SF.

Strategic Delivery: One residential unit (2BR/1BA) and the retail storefront delivered VACANT at COE, allowing for immediate market-rate repositioning or owner-occupancy.

Unbeatable Basis: Priced at only $260/SF (Total Usable)—nearly 50% below 2026 replacement costs in Los Angeles.

Institutional-Grade Yield: The asset offers a 5.41% Pro-Forma Cap Rate on the real estate acquisition ($1.925M), outperforming the 90003 market average for stabilized mixed-use.

Total Enterprise Return: When factoring in the total acquisition including the business ($2.075M), the stabilized return (Yield on Cost) remains an impressive 8.42% Cap Rate. This represents one of the highest-yielding value-add opportunities in the 90003 zip code.

RSO Upside: While subject to LARSO (built 1934), the current Loss-to-Lease creates a quantifiable path to significant future equity growth upon stabilization.

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