16-Unit Strip
For Sale
$1,400,000
1026 Mchenry Avenue, Modesto, CA 95350
Corner retail property offering multiple commercial spaces with central air conditioning.
Property Size6,672 SF
Price / SF$209.83
Days on Market283
Property Features for 1026 Mchenry Avenue
General Information
Standard status
Active
Size
6,672 SF
Property subtype
Retail
Additional Details
Corner Location
Yes
Amenities
Central Air
Commercial
Building Details
Year Built
1961
Tenancy
Multi
Listing Agency:
HomeSmart PV & Associates
5687900
Listed By:
Camila Carrillo · License #02091368
5687900
Source:
Xome
Added: Nov 20, 2025
Changed: Aug 29
Last Checked: Aug 29 at 10:07PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of HomeSmart PV & Associates
Investment Insights
Based on property information with market context.
McHenry Plaza is a 16-unit strip mall positioned at the intersection of McHenry Avenue and Corson Avenue in Modesto. The property includes central air conditioning and commercial exterior improvements, providing a multi-space retail configuration for a range of occupants.
Constructed in 1961, the property is located at 1026 McHenry Avenue, Modesto, CA 95350. Its corner placement provides an identifiable presence at the junction of two streets, while the unit count supports a shared retail center format.
Constructed in 1961, the property is located at 1026 McHenry Avenue, Modesto, CA 95350. Its corner placement provides an identifiable presence at the junction of two streets, while the unit count supports a shared retail center format.
Key Highlights
- 16‑unit strip mall
- Corner position at McHenry Avenue and Corson Avenue
- Central air conditioning
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$103,477
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.39%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,069,540
$2.1M
Cap Rate 7%
$1,478,243
$1.5M
Cap Rate 9%
$1,149,744
$1.1M
Market Conditions
NOI Build-Up for 6,672 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$156.9K $23.52/SF
− Vacancy
−$9.1K −$1.36/SF
EGI
$147.8K $22.16/SF
− OpEx
−$44.3K −$6.65/SF
NOI
$103.5K $15.51/SF
Area
Modesto, CA
Vacancy
5.80%
Lease Rate
$23.52 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,069,540
Cap Rate 7%
$1,478,243
Cap Rate 9%
$1,149,744
Alternative Uses
Best Use
Retail
$1.48M
$1.29M – $1.72M
NOI $103,477 @ 7.0% cap · market cap 7.39%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.24M
$1.96M – $2.62M
NOI $156,925 @ 7.0% cap · market cap 11.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,649
Businesses Nearby
68k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 48%
Shops & Services 37%
Hotels & Casinos 9%
Home Improvements & Furnishings 5%
SONIC Drive In
Dining
15,822 visits/mo
0.4 miles
Wendy's
Dining
15,183 visits/mo
0.5 miles
Chevron
Shops & Services
14,056 visits/mo
0.4 miles
Advance Auto Parts
Shops & Services
7,258 visits/mo
0.3 miles
Tiki Lodge Hotel
Hotels & Casinos
3,792 visits/mo
0.2 miles
Demographics for 95350, CA
55,344
Population
20,327
Households
2.7
Avg Household Size
37
Median Age
20%
College-Educated
85%
High-School Grad
8.8 sq mi
ZIP Area
6,289
Density / Sq Mi
$73,611
Median Household Income
$43,428
Median Earnings
$1,483
Median Rent
$397,100
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Strip mall - Corner retail property offering multiple commercial spaces with central air conditioning.
Where is this strip mall located?
The property is located at 1026 Mchenry Avenue Modesto, CA.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 16‑unit strip mall; Corner position at McHenry Avenue and Corson Avenue; Central air conditioning
