Hillcrest Retail Building For
For Sale
Contact for pricing
1041-1047 University Ave, San Diego, CA 92103
Two-story retail building in vibrant Hillcrest neighborhood.
Property Size8,100 SF
Price / SF$506.17
Days on Market183
Property Features for 1041-1047 University Ave
General Information
Standard status
Active
Size
8,100 SF
Property subtype
Retail
Zoning
CC-3-8
Investment Type
Value Add
Building Details
Year Built
1910
Year Renovated
2010
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
CBRE - San Diego
(858) 546-4604
Listed By:
Reg Kobzi · License #CA 00917639
Source:
Crexi
Added: Feb 11
Changed: Aug 8
Last Checked: Aug 12 at 5:01AM
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 CBRE - San Diego
Investment Insights
Based on property information with market context.
This two-story retail building is located at 1041-1047 University Avenue in the heart of Hillcrest, one of San Diego’s most vibrant and densely populated urban neighborhoods. The property is strategically positioned in a high-traffic urban core, guaranteeing significant foot traffic and exceptional visibility. The property offers a turnkey solution for restaurateurs, featuring a fully-equipped former restaurant space with a hood system, complemented by a spacious outdoor patio. The restaurant-ready space allows capitalizing on existing infrastructure while attracting customers with an al fresco dining experience, enhancing capacity and appeal in a prime location. The property size is 8,100 square feet. For owner-users, the property presents an exceptional opportunity to acquire the building with only 10% down through SBA financing.
Key Highlights
- Prime Hillcrest location with high foot traffic and exceptional visibility.
- Restaurant‑ready space with existing hood system.
- Desirable and spacious outdoor patio for al fresco dining.
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
$223,949
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
5.46%
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%
$4,478,980
$4.5M
Cap Rate 7%
$3,199,271
$3.2M
Cap Rate 9%
$2,488,322
$2.5M
Market Conditions
NOI Build-Up for 8,100 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
$311.0K $38.40/SF
− Vacancy
−$12.4K −$1.54/SF
EGI
$298.6K $36.86/SF
− OpEx
−$74.6K −$9.22/SF
NOI
$223.9K $27.65/SF
Area
San Diego, CA
Vacancy
4.00%
Lease Rate
$38.40 /SF/Yr
Expense Ratio
25.00%
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%
$4,478,980
Cap Rate 7%
$3,199,271
Cap Rate 9%
$2,488,322
Alternative Uses
Best Use
Specialty Retail
$3.20M
$2.80M – $3.73M
NOI $223,949 @ 7.0% cap · market cap 5.46%
Second Best
Retail
$2.79M
$2.44M – $3.26M
NOI $195,527 @ 7.0% cap · market cap 4.77%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
7,068
Businesses Nearby
372k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 42%
Dining 29%
Shops & Services 22%
Home Improvements & Furnishings 3%
Whole Foods Market
Groceries
64,059 visits/mo
0.3 miles
Ralphs
Groceries
46,221 visits/mo
0.5 miles
VONS
Groceries
44,279 visits/mo
0.4 miles
Shell
Shops & Services
13,326 visits/mo
0.2 miles
Better Buzz Coffee Roasters
Dining
12,340 visits/mo
0.3 miles
Demographics for 92103, CA
33,311
Population
21,363
Households
1.6
Avg Household Size
42
Median Age
63%
College-Educated
97%
High-School Grad
3.7 sq mi
ZIP Area
9,003
Density / Sq Mi
$96,887
Median Household Income
$69,732
Median Earnings
$2,020
Median Rent
$986,800
Median Home Value
Market
Vacancy Rate% for Retail in San Diego, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Two-story retail building in vibrant Hillcrest neighborhood.
Where is this conventional restaurant located?
The property is located at 1041-1047 University Ave San Diego, CA.
What is the asking price?
The asking price for this property is $4,100,000.
What are key features of this property?
This property features: Prime Hillcrest location with high foot traffic and exceptional visibility.; Restaurant‑ready space with existing hood system.; Desirable and spacious outdoor patio for al fresco dining.
