12205 Centralia St

Investment Overview

Family-owned asset and first time on the market in over 40 years! 12205 Centralia Street is a high-performing neighborhood retail strip center located in the dense, supply-constrained Lakewood/Cerritos submarket at the border of Los Angeles and Orange Counties. The ± 14,220 square foot multi-tenant center is situated on a large ± 38,522 square foot parcel with 135 total parking spaces for the shopping center through a reciprocal parking agreement (102 Open parking spaces + 5 ADA spaces with 28 rear alley parking spaces), providing excellent access, convenience, and visibility for daily-needs consumers.

The asset offers investors an extremely rare value-add retail opportunity supported by immediate leasing upside, below-market rents, and conversion potential to NNN lease structures. The center currently includes a prime ±2,346 SF end-cap with a month-to-month tenant, enabling an investor to mark to market within 60 days while increasing occupancy and capturing a meaningful net operating income uplift.

Current in-place rents across the property remain materially below market, creating approximately 20% upside through renewal negotiation, new leasing, and transitioning leases to NNN. Once stabilized and at projected market rents, the asset yields a pro forma 7.94% cap rate, positioning it among the most attractive returns available at the neighborhood retail level in this region.

With high year-one income, robust year-two cash-on-cash returns, and baked-in leasing and rent growth potential, the Centralia property is a stable, cash-flowing investment with meaningful value-creation opportunities rarely available in infill Southern California.