Hermosa Beach, known for its stunning coastline and vibrant community, is a backdrop to an enticing investment opportunity with a mixed-use property located at 1220 Hermosa Avenue. This 7,930-square-foot jewel building is home to the renowned RYLA Restaurant & Bar, three residential apartment units, and an undeveloped parking lot parcel. Currently listed at $9,655,524, this property promises both immediate and long-term potential for discerning investors.
At the heart of this centrally-located property is the RYLA Restaurant & Bar, an exquisite Californian and Japanese fusion concept helmed by Chef Ray Hayashi. Backed by Simms Restaurants, renowned for their South Bay establishments, RYLA has quickly gained recognition since its opening in February 2022, according to the marketing flyer for the building. With positive write-ups in Eater LA, Michelin Guide, and local publications, RYLA has become a known culinary destination in this community.
The property’s second floor is home to three apartment units, providing an opportunity for residential income. Currently, one unit operates on a month-to-month basis, while the other two units have been intentionally kept vacant to allow flexibility for the new buyer. With below-market rents in the property, there is potential for rental upside, further enhancing the property’s value.
This property also features an undeveloped parking lot parcel, an incredibly rare find on Hermosa Avenue. With approximately 4,015 square feet of land and nine parking stalls, this part of the property offers potential for future development and parking income while the entitlements are underway. Additionally, the parking lot parcel is on a separate tax assessor’s APN, presenting an attractive value-add opportunity.
The Hermosa Avenue location benefits from high foot traffic and strong visibility for the property, while also providing dual access to the building from both sides of the block.
The Beach Cities consistently maintain low multi-family vacancy rates, making these residential units highly sought after. Meanwhile, restaurant space remains in high demand throughout the South Bay market, further solidifying the property’s desirability. This diverse use mix ensures asset stability and attractiveness to a wide range of potential tenants.
CBRE’s team that includes Simon Mattox, first vice president; Austin Wolitarsky, senior associate; Daniel Riley, senior vice president; and Jamie Brooks, senior vice president, is leading the marketing efforts on behalf of a family office that owns the property.
