Mixed-Use Income Property with
For Sale
$1,399,000
1140 Grand Avenue, Arroyo Grande, CA 93420
Fully occupied mixed-use property built in 1959, featuring residential and commercial units and ample on-site parking.
Property Size6,000 SF
Price / SF$233.17
Days on Market156
Property Features for 1140 Grand Avenue
General Information
Standard status
Active
Size
6,000 SF
Property subtype
Mixed Use
Amenities
3
Building Details
Year Built
1959
Listing Agency:
Trujillo Commercial Real Estate Group
(805) 703-0999
Listed By:
Rodney Trujillo · License #01388764
Source:
Xome
Added: Mar 21
Changed: Aug 23
Last Checked: Aug 22 at 12:42PM
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 Trujillo Commercial Real Estate Group
Investment Insights
Based on property information with market context.
This fully occupied mixed-use property was built in 1959 and includes a mix of residential and commercial units, creating diversified in-place income. The offering is described as turnkey, with 100% occupancy and strong in-place rents.
Located along the Grand Avenue corridor in Arroyo Grande, the property benefits from high visibility and convenient access to Highway 101. The remarks also note ample on-site parking and established nearby businesses, including Nova Coffee and Adventist Health.
The configuration combines residential income stability with commercial tenancy within the same center, suited to an investor seeking a well-located, income-producing asset in an active retail and healthcare corridor.
Located along the Grand Avenue corridor in Arroyo Grande, the property benefits from high visibility and convenient access to Highway 101. The remarks also note ample on-site parking and established nearby businesses, including Nova Coffee and Adventist Health.
The configuration combines residential income stability with commercial tenancy within the same center, suited to an investor seeking a well-located, income-producing asset in an active retail and healthcare corridor.
Key Highlights
- Fully occupied mixed‑use property with 100% occupancy and strong in‑place rents
- Approx. 6,000 SF mixed‑use building with a balanced mix of residential and commercial units
- Approx. 6.92% cap rate (as stated in the remarks)
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
$115,830
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
8.28%
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%
$2,316,600
$2.3M
Cap Rate 7%
$1,654,714
$1.7M
Cap Rate 9%
$1,287,000
$1.3M
Market Conditions
NOI Build-Up for 6,000 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
$216.0K $36.00/SF
− Vacancy
−$5.4K −$0.90/SF
EGI
$210.6K $35.10/SF
− OpEx
−$94.8K −$15.80/SF
NOI
$115.8K $19.31/SF
Area
San Luis Obispo County, CA
Vacancy
2.50%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
45.00%
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%
$2,316,600
Cap Rate 7%
$1,654,714
Cap Rate 9%
$1,287,000
Alternative Uses
Best Use
Apartment 5plus
$1.65M
$1.45M – $1.93M
NOI $115,830 @ 7.0% cap · market cap 8.28%
Second Best
—
—
no second resolved use
Theoretical Best
Healthcare Medical
$2.36M
$2.06M – $2.75M
NOI $165,180 @ 7.0% cap · market cap 11.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,297
Businesses Nearby
Explore this area
Business Placement
Demographics for 93420, CA
30,540
Population
13,823
Households
2.2
Avg Household Size
49
Median Age
44%
College-Educated
95%
High-School Grad
197.4 sq mi
ZIP Area
155
Density / Sq Mi
$106,718
Median Household Income
$51,990
Median Earnings
$2,025
Median Rent
$872,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Fully occupied mixed-use property built in 1959, featuring residential and commercial units and ample on-site parking.
Where is this residential income property located?
The property is located at 1140 Grand Avenue Arroyo Grande, CA.
What is the asking price?
The asking price for this property is $1,399,000.
What are key features of this property?
This property features: Fully occupied mixed‑use property with 100% occupancy and strong in‑place rents; Approx. 6,000 SF mixed‑use building with a balanced mix of residential and commercial units; Approx. 6.92% cap rate (as stated in the remarks)
