500-506 Pacific Coast Hwy
Fully leased multi-tenant retail investment at the signalized intersection of Pacific Coast Highway and 5th Street in Hermosa Beach, California, offered at $4,375,000 at a 4.61% cap ($201,624 NOI). The 100% occupied property generates immediate, stable cash flow from four NNN-leased tenants with contractual annual rent escalations of 3% to 5%.
The 5,850 SF building sits on a 15,040 SF hard corner parcel with 19 dedicated on-site parking spaces—a rare amenity in this market. The location commands exceptional visibility and traffic exposure, with approximately 58,624 vehicles per day on Pacific Coast Highway. The tenant mix includes Baran's 2239, a nationally recognized restaurant with multiple Michelin Bib Gourmand awards on a new five-year lease through February 2031 with 5% annual increases, plus Dream Nails, Purple Haze Smoke Shop, and Tacos El Goloso. This diverse roster of service-oriented and dining businesses is resilient to e-commerce competition. Positioned in the highly desirable beachfront community of Hermosa Beach, where retail development opportunities are severely limited, the property benefits from strong barriers to entry and long-term value driven by scarcity of commercial space along Pacific Coast Highway.
- 100% occupied, four NNN tenants with 3–5% annual rent escalations
- Baran's 2239 (Michelin Bib Gourmand–recognized restaurant) on new five-year lease through 2031
- 58,624 vehicles per day; signalized corner with dual street frontage
- 19 on-site parking spaces (rare for Hermosa Beach retail)
- Fee simple ownership; beachfront location with limited retail development opportunities
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Location
This fully leased retail investment offers immediate, stable cash flow from a 100% occupied property located at the highly sought-after signalized intersection of Pacific Coast Highway and 5th Street in Hermosa Beach. Positioned on a premier coastal hard corner with exposure to approximately 58,624 vehicles per day, the property benefits from exceptional visibility, convenient access, and full ingress and egress from both streets. A rare feature for this market, the asset includes approximately 19 dedicated on-site parking spaces, providing a significant advantage for both tenants and customers. The property is leased to four tenants under NNN lease agreements, generating approximately $201,624 in annual net operating income while requiring minimal landlord management. The tenant roster includes Baran's 2239, a nationally recognized restaurant with multiple Michelin Bib Gourmand awards, which recently signed a new five-year lease through February 2031 featuring 5% annual rent increases. Additional tenants include Dream Nails, Purple Haze Smoke Shop, and Tacos El Goloso, creating a diverse mix of service-oriented and dining businesses that are resilient to e-commerce competition. All leases include contractual annual rent escalations ranging from 3% to 5%, supporting consistent income growth and providing a strong hedge against inflation. Located within the highly desirable beachfront community of Hermosa Beach, where retail development opportunities are extremely limited, the property benefits from strong barriers to entry and long-term value driven by the scarcity of commercial space along Pacific Coast Highway.