Turnkey Industrial Property with
For Sale
Contact for pricing
107-115 Heron Way, Merced, CA 95341
Two warehouse buildings on 1.67 acres, ideal for industrial uses.
Property Size26,000 SF
Lot Size1.67 Acres
Price / SF$138.42
Days on Market159
Property Features for 107-115 Heron Way
General Information
Standard status
Active
Size
26,000 SF
Lot size
1.67 Acres
Property subtype
Industrial, Office
Zoning
I-L
Building Details
Year Built
2005
Buildings
2
Stories
1
Units
2
Listing Agency:
London Properties
(209) 725-2100
Listed By:
Debbie Engel · License #00463722
Source:
Crexi
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 11 at 12:33PM
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 London Properties
Investment Insights
Based on property information with market context.
This turnkey industrial commercial property includes two large warehouse buildings featuring sprinkler systems and ADA-compliant bathrooms, all situated on a 1.67-acre parcel. Unit 107 offers 9,000 square feet of space, including multiple offices, a conference room, storage rooms, two open office areas suitable for cubicles and desks, a kitchen, multiple bathrooms, and a sizable warehouse area. It is equipped with four large roll-up doors and a 400-amp, 208-volt, 3-phase electrical panel. Unit 115 provides 16,000 square feet of open warehouse space with three large roll-up doors and two bathrooms. It features a robust electrical infrastructure with a 2000-amp, 480-volt, 3-phase panel and an additional 800-amp, 208-volt, 3-phase panel, supported by multiple meters. The property's layout, power capacity, and location make it suitable for owner-users, investors, or multi-tenant industrial operations. It is located in an established industrial area with convenient freeway access, making it accessible for a variety of industrial and commercial uses.
Key Highlights
- Two warehouse buildings totaling 25,000 sq ft on 1.67 acres.
- Strong electrical infrastructure: Unit 107 (400 amps, 208 volts, 3‑phase); Unit 115 (2000 amps, 480 volts, 3‑phase) and (800 amps, 208 volts, 3‑phase).**
- Unit 107 features multiple offices, conference room, kitchen, and open office areas.
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
$308,905
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
8.58%
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%
$6,178,100
$6.2M
Cap Rate 7%
$4,412,929
$4.4M
Cap Rate 9%
$3,432,278
$3.4M
Market Conditions
NOI Build-Up for 26,000 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
$499.2K $19.20/SF
− Vacancy
−$24.0K −$0.92/SF
EGI
$475.2K $18.28/SF
− OpEx
−$166.3K −$6.40/SF
NOI
$308.9K $11.88/SF
Area
Merced County, CA
Vacancy
4.80%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$6,178,100
Cap Rate 7%
$4,412,929
Cap Rate 9%
$3,432,278
Alternative Uses
Best Use
Flex RnD
$4.41M
$3.86M – $5.15M
NOI $308,905 @ 7.0% cap · market cap 8.58%
Second Best
Warehouse
$2.76M
$2.42M – $3.22M
NOI $193,376 @ 7.0% cap · market cap 5.37%
Theoretical Best
Healthcare Medical
$5.74M
$5.02M – $6.69M
NOI $401,544 @ 7.0% cap · market cap 11.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
80
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95341, CA
33,194
Population
9,331
Households
3.6
Avg Household Size
29
Median Age
8%
College-Educated
63%
High-School Grad
146.8 sq mi
ZIP Area
226
Density / Sq Mi
$55,516
Median Household Income
$32,184
Median Earnings
$1,172
Median Rent
$295,300
Median Home Value
Market
Vacancy Rate% for Industrial 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?
Flex space - Two warehouse buildings on 1.67 acres, ideal for industrial uses.
Where is this flex space located?
The property is located at 107-115 Heron Way Merced, CA.
What is the asking price?
The asking price for this property is $3,599,000.
What are key features of this property?
This property features: Two warehouse buildings totaling 25,000 sq ft on 1.67 acres.; Strong electrical infrastructure**: Unit 107 (400 amps, 208 volts, 3‑phase); **Unit 115 (2000 amps, 480 volts, 3‑phase) and (800 amps, 208 volts, 3‑phase).**; Unit 107 features multiple offices, conference room, kitchen, and open office areas.
