HERMOSA BEACH INDUSTRIAL DEALS NOW

$6,000,000

Description

INDUSTRIAL PROPERTY SHOWCASE

824 1st St Hermosa Beach, CA 90254 5,100 SF — Industrial / Office Building ($1,176.47/SF) $6,000,000

Hermosa Beach 90254

Size: 5,100 SF • Price / SF: $1,176.47 • Price: $6,000,000

Executive Summary — The Coastal Command Center

Prime, newly renovated industrial/office boutique located in the heart of Hermosa Beach — a rare coastal industrial opportunity where lifestyle prestige meets practical utility. Built/renovated for high-end occupiers, this 5,100 SF turnkey asset offers a flexible mix of six private offices (each with private bath), two levels of finished workspace, ocean-facing decks, elevated ceiling heights and secured on-site parking with ADA and elevator access. Entitled as commercial condos (subdivision map recorded), the property can be delivered as a full owner-user facility or reconfigured and sold as individual condominium units — an ideal play for executives who want HQ with ocean breezes, or investors seeking high-visibility, high-margin condo sales.

Investment Highlights & Property Snapshot

• Location: Hermosa Beach — walkable retail, restaurants, and immediate coastal lifestyle amenity set.
• Building Size: 5,100 SF (2 floors) — flexible, high-image layout.
• Price: $6,000,000 ($1,176.47/SF).
• Use: Office / High-Image Industrial / Creative HQ / Condo conversion potential.
• Year Built / Renovated: 2001 / 2025 (extensively updated).
• Ceiling Height: high ceilings throughout; dramatic open volumes and ocean-facing decks.
• Parking: on-site secured street-level parking + ADA stalls; direct elevator access.
• Zoning: C3 (buyer to verify local entitlements for intended uses).
• Value Drivers: recent high-end finishes, convertible condo entitlement, coastal scarcity premium, strong occupational demand from lifestyle-oriented professional services and creative tech.
• Why it matters: Hermosa Beach offers scarcity of modern commercial product — this is a move-in ready, premium coastal HQ or boutique industrial condo with immediate cashflow or premium resale upside.

Why This Property

This is not a run-of-the-mill warehouse: it’s a Coastal Command Center — built for owners and operators who want brand image to match function. The combination of boutique industrial capability (secure garage/roll-up access and robust systems), luxury office finishes, and resale optionality (condo conversion/subdivision already progressed) makes this a dual-track investment: steady owner-occupier utility today, premium condo-lot exit optionality tomorrow. In a market with virtually no new coastal industrial supply, owning a finished, convertible asset steps you ahead of competition — both for talent recruitment and for capitalization-event economics.

Industrial Market — Hermosa Beach & South Bay Pulse

Hermosa Beach sits inside the South Bay micro-market — tight coastal geography, limited industrial land, and extremely constrained new supply. Institutional and private capital continue to hunt for last-mile, high-image assets near the coast; that demand pushes cap-rates lower and per-SF pricing materially higher than farther-inland alternatives. Recent Southern California South-Bay transactions (below) show active institutional appetite for coastal and near-coastal industrial product, and they help explain the premium Hermosa assets command.

Recent notable South Bay / nearby industrial transactions
• Golden Coast Portfolio — ~600k SF across three Southern California properties (Redondo Beach included). Portfolio sold in 2025 for $165.5M to multiple institutional buyers; Redondo Beach portion acquired by Terreno Realty.
• 91,643 SF industrial (Compton) — Sold for $36.9M (Aug 2024) — local institutional trade that demonstrates pricing strength inside the South Bay logistics arc.
• Pinyon Pointe / Link Logistics activity — Large-format South Bay portfolio trades and Link/other large owners acquiring submarket-scale assets in 2024 underscore continued capital flows into coastal and near-coast industrial.

Market takeaways for the Hermosa buyer/investor: supply near the beach is finite, institutional capital is selectively pricing premium coastal assets, and trophy/image industrial condo buildings like this one trade at outsized valuations because they combine lifestyle appeal with industrial utility. Recent regional trades show appetite for multi-user and last-mile assets — buyer motivation ranges from yield (investors) to strategic occupancy (operators seeking prestige + logistics access).

Positioning & Uses — Who Wins Here?

• Executive HQ for creative brands, design studios, boutique manufacturers or specialty service firms wanting a coastal address.
• Owner-user seeking turnkey HQ + warehouse dock/garage and the option to subdivide for future liquidity events.
• Condo developer or investor targeting high-net-worth buyers who prize coastal garages and secure collector parking — think “finish-line” garage concepts.
• Last-mile boutique distribution or specialty fleet operations that need image plus function.

Financial / Strategic Notes

• Conversion optionality: Entitlement momentum (commercial condo) + recorded subdivision map makes conversion to individually sellable condos a realistic value-unlock path.
• Scarcity premium: Hermosa Beach has essentially zero new industrial land; scarcity equals pricing power.
• Exit paths: Owner-occupy, convert and sell condos, or hold as leased high-image asset to a credit user.