Three-Unit Retail Office
For Sale
$4,950,000
1121-1125 Pacific Ave Santa, Santa Cruz, CA 95060
Three-unit building with retail and office spaces, built in 1980, zoned CBD, 100% occupied and professionally managed.
Property Size10,204 SF
Price / SF$485.10
Days on Market49
Property Features for 1121-1125 Pacific Ave Santa
General Information
Standard status
Active
Size
10,204 SF
Class
B
Property subtype
Street Retail
Zoning
CBD
Occupancy
100%
Building Details
Building Size
10,204 SF
Year Built
1980
Tenancy
Multi
Listing Agency:
CSR Commercial Real Estate
(408) 909-0998
Listed By:
Jonathan Hanhan · License #01800203
(408) 909-0998
Source:
Thebrokerlist
Added: Jul 15
Changed: Aug 25
Last Checked: Aug 31 at 12:40PM
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 CSR Commercial Real Estate
Investment Insights
Based on property information with market context.
The property at 1121–1125 Pacific Avenue is an exceptionally maintained, three-unit commercial building totaling 10,204 SF. Built in 1980, it includes a mix of retail space and office units and is currently 100% occupied. The asset is professionally managed, offering an owner-user or investment buyer an income-producing configuration from day one.
Located in Downtown Santa Cruz on Pacific Avenue, the property benefits from a central retail and dining setting within the Central Business District (CBD) zoning designation. This is a straightforward opportunity to acquire a small multi-unit building with an in-place tenant occupancy status in a core commercial corridor.
Located in Downtown Santa Cruz on Pacific Avenue, the property benefits from a central retail and dining setting within the Central Business District (CBD) zoning designation. This is a straightforward opportunity to acquire a small multi-unit building with an in-place tenant occupancy status in a core commercial corridor.
Key Highlights
- ±10,204 SF three‑unit building with retail and office space
- Built in 1980 and zoned Central Business District (CBD)
- 100% occupied with professionally managed tenancy
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
$408,425
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
8.25%
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%
$8,168,500
$8.2M
Cap Rate 7%
$5,834,643
$5.8M
Cap Rate 9%
$4,538,056
$4.5M
Market Conditions
NOI Build-Up for 10,204 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
$612.2K $60.00/SF
− Vacancy
−$28.8K −$2.82/SF
EGI
$583.5K $57.18/SF
− OpEx
−$175.0K −$17.15/SF
NOI
$408.4K $40.03/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$60.00 /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%
$8,168,500
Cap Rate 7%
$5,834,643
Cap Rate 9%
$4,538,056
Alternative Uses
Best Use
Retail
$5.83M
$5.11M – $6.81M
NOI $408,425 @ 7.0% cap · market cap 8.25%
Second Best
Office B
$3.58M
$3.13M – $4.18M
NOI $250,712 @ 7.0% cap · market cap 5.06%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,970
Businesses Nearby
Explore this area
Business Placement
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
Median Home Value
Market
Vacancy Rate% for Office 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?
Retail space - Three-unit building with retail and office spaces, built in 1980, zoned CBD, 100% occupied and professionally managed.
Where is this retail space located?
The property is located at 1121-1125 Pacific Ave Santa Santa Cruz, CA.
What is the asking price?
The asking price for this property is $4,950,000.
What are key features of this property?
This property features: ±10,204 SF three‑unit building with retail and office space; Built in 1980 and zoned Central Business District (CBD); 100% occupied with professionally managed tenancy
