Established Coffee Shop with
For Sale
$199,500
1121 Rossi Road C, Templeton, CA 93465
Operating café business with indoor seating, espresso equipment, and a dedicated service counter in a Retail-zoned suite.
Property Size990 SF
Price / SF$201.52
Days on Market65
Property Features for 1121 Rossi Road C
General Information
Standard status
Active
Size
990 SF
Property subtype
Commercial/Industrial
Financials
Asking Price
$199,500
Business Included
Yes
Listing Agency:
Sapphire Real Estate Services, Inc.
(805) 703-0998
Listed By:
Melina Trujillo · License #02033461
(805) 703-0998
Source:
Exitrealty
Added: Jun 27
Changed: Aug 29
Last Checked: Jul 12 at 3:12AM
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 Sapphire Real Estate Services, Inc.
Investment Insights
Based on property information with market context.
Merry Hill Coffee & Teas is an operating café business in Suite C at 1121 Rossi Road, Templeton, California. The approximately 990-square-foot space includes indoor customer seating, commercial espresso equipment, a service counter, and a back-of-house area arranged for daily café operations.
The business has operated since 2008 and includes an established local brand. Its configuration combines customer-facing seating and service areas with supporting operational space, while the Retail zoning designation aligns with the current café use. The business is offered for sale as an operating coffee shop opportunity.
The business has operated since 2008 and includes an established local brand. Its configuration combines customer-facing seating and service areas with supporting operational space, while the Retail zoning designation aligns with the current café use. The business is offered for sale as an operating coffee shop opportunity.
Key Highlights
- Operating coffee shop business established in 2008
- Approximately 990 SF café space in Suite C
- Commercial espresso equipment included
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
$14,165
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
7.10%
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%
$283,300
$283.3K
Cap Rate 7%
$202,357
$202.4K
Cap Rate 9%
$157,389
$157.4K
Market Conditions
NOI Build-Up for 990 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
$19.8K $20.04/SF
− Vacancy
−$952 −$0.96/SF
EGI
$18.9K $19.08/SF
− OpEx
−$4.7K −$4.77/SF
NOI
$14.2K $14.31/SF
Area
San Luis Obispo County, CA
Vacancy
4.80%
Lease Rate
$20.04 /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%
$283,300
Cap Rate 7%
$202,357
Cap Rate 9%
$157,389
Alternative Uses
Best Use
Specialty Retail
$202.4K
$177.1K – $236.1K
NOI $14,165 @ 7.0% cap · market cap 7.10%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$389.4K
$340.7K – $454.3K
NOI $27,255 @ 7.0% cap · market cap 13.66%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
328
Businesses Nearby
41k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 89%
Dining 11%
Trader Joe's
Groceries
36,327 visits/mo
0.1 miles
The Human Bean
Dining
4,675 visits/mo
0.1 miles
Demographics for 93465, CA
10,121
Population
4,160
Households
2.4
Avg Household Size
44
Median Age
47%
College-Educated
97%
High-School Grad
84.6 sq mi
ZIP Area
120
Density / Sq Mi
$120,843
Median Household Income
$54,703
Median Earnings
$2,417
Median Rent
$875,200
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.
Similar Off Market Nearby
- The Human Bean — 1025 Rossi Rd, Templeton, CA 93465
- Merry Hill Coffee — 1121 Rossi Rd Unit C, Templeton, CA 93465
- Joe's — 730 S Main St, Templeton, CA 93465
- BellaVia Food & Coffee — 311 6th st, templeton, ca 93465
Frequently Asked Questions
What type of property is this?
Coffee shop - Operating café business with indoor seating, espresso equipment, and a dedicated service counter in a Retail-zoned suite.
Where is this coffee shop located?
The property is located at 1121 Rossi Road C Templeton, CA.
What is the asking price?
The asking price for this property is $199,500.
What are key features of this property?
This property features: Operating coffee shop business established in 2008; Approximately 990 SF café space in Suite C; Commercial espresso equipment included
