107 Pebbly Beach Rd 6,040 SF 100% Leased Retail Building Avalon, CA 90704 $5,995,000 ($992.55/SF) 5.23% Cap Rate

Coastal Commercial is pleased to offer for sale a rare mixed-use fee simple property on the waterfront of Catalina Island, in the city of Avalon. Built in 2007, the building is one
of the only newer construction assets in Avalon and is currently stabilized at a 5.23% cap rate. The three-story property consists of three retail units on the ground floor, three residential units on the second floor, and a residential penthouse with a rooftop deck on the third floor. The retail units are occupied by Brown’s Bikes (approximately 1,000 square feet), Dive Catalina (approximately 500 square feet), and Ciao-Baci Fine Gifts (approximately 700 square feet). All units are either occupied by the Seller or operate on month-to-month leases, providing flexibility for a new owner.
Brown’s Bikes operates under a highly valuable conditional use permit, as one of the few permitted bike shops on Catalina Island, where obtaining new permits is extremely
difficult. The residential units are highly desirable and contribute strong income potential. Two of the second-floor units are permitted short-term rentals, each consisting of two bedrooms and two bathrooms at approximately 720 square feet. These units generate strong income due to high demand for waterfront vacation rentals. The short-term rental permits may be transferred once to a new owner. The remaining second-floor unit is a one-bedroom, one-bathroom residence of approximately 600 square feet, currently leased on a month-to-month basis.
The top-floor penthouse is a luxurious approximately 1,800 square foot three-bedroom, three-bathroom residence, currently occupied by the Seller, and features an exclusive
rooftop deck with sweeping views of the Catalina Harbor. All residential units offer private balconies with ocean views. This property represents a rare opportunity for an investor or owner-user to acquire one of the only fee simple waterfront assets on Catalina Island. Ideally located along a primary pedestrian corridor, the property is among the first seen by visitors arriving via the Catalina Flyer and Catalina Express. With its irreplaceable location, strong in-place income, and long-term appreciation potential, this offering represents a true generational asset.