Industrial Flex Buildings with Paint
For Sale
$9,999,000
116 E 16th Street, Costa Mesa, CA 92627
Three connected industrial buildings offer office support, warehouse space, and 14+ foot ceilings with paint booths at 116 E 16th.
Property Size40,000 SF
Price / SF$249.98
Days on Market48
Property Features for 116 E 16th Street
General Information
Standard status
Active
Size
40,000 SF
Property subtype
Commercial
Additional Details
Opportunity Zone
Yes
Highway Access
Yes
Clear Height
14 ft
Multifamily Units
36
Building Details
Stories
4
Listing Agency:
Chas Patterson Realty
(559) 638-3651
Listed By:
Chas Patterson ([email protected])
Source:
Valleyland
Added: Jun 26
Changed: Aug 10
Last Checked: Aug 11 at 8:41AM
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 Chas Patterson Realty
Investment Insights
Based on property information with market context.
This offering includes three highly desirable industrial buildings at 110, 116, and 118 E 16th Street. The buildings combine functional office space with spacious warehouse areas and 14+ foot ceiling heights. 110 E 16th Street is currently used as the headquarters for a vintage Ferrari dealer, which can be made available for an owner-user. The 116 E 16th Street building includes two professional-grade paint booths, supporting automotive and related operational needs.
The site is positioned in an Opportunity Zone and is described as being suitable for mixed use development under Costa Mesa’s 19 West Urban Plan. The city’s specific plan allows for up to four stories with density of 1.0–1.25 FAR, with one analysis suggesting approximately 30,000 to 40,000 buildable square feet and potentially 18 to 36 units.
For operators, the existing configuration supports automotive repair and similar industrial uses, with dedicated paint booth capacity at 116 E 16th Street and broad warehouse clear-height. For developers and investors, the property’s Opportunity Zone status and mixed-use planning framework present a redevelopment pathway while retaining an income-producing, automotive-oriented building base.
The site is positioned in an Opportunity Zone and is described as being suitable for mixed use development under Costa Mesa’s 19 West Urban Plan. The city’s specific plan allows for up to four stories with density of 1.0–1.25 FAR, with one analysis suggesting approximately 30,000 to 40,000 buildable square feet and potentially 18 to 36 units.
For operators, the existing configuration supports automotive repair and similar industrial uses, with dedicated paint booth capacity at 116 E 16th Street and broad warehouse clear-height. For developers and investors, the property’s Opportunity Zone status and mixed-use planning framework present a redevelopment pathway while retaining an income-producing, automotive-oriented building base.
Key Highlights
- Three connected industrial buildings: 110, 116, and 118 E 16th Street in a designated Opportunity Zone
- 110 E 16th Street serves as a headquarters for a vintage Ferrari dealer; owner‑user space available
- 116 and 118 E 16th Street are occupied by automotive repair shop tenants
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
$697,956
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
6.98%
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%
$13,959,120
$14.0M
Cap Rate 7%
$9,970,800
$10.0M
Cap Rate 9%
$7,755,067
$7.8M
Market Conditions
NOI Build-Up for 40,000 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
$1.12M $28.08/SF
− Vacancy
−$49.4K −$1.24/SF
EGI
$1.07M $26.84/SF
− OpEx
−$375.8K −$9.40/SF
NOI
$698.0K $17.45/SF
Area
Costa Mesa, CA
Vacancy
4.40%
Lease Rate
$28.08 /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%
$13,959,120
Cap Rate 7%
$9,970,800
Cap Rate 9%
$7,755,067
Alternative Uses
Best Use
Flex RnD
$9.97M
$8.72M – $11.63M
NOI $697,956 @ 7.0% cap · market cap 6.98%
Second Best
Office B
$9.47M
$8.29M – $11.05M
NOI $663,221 @ 7.0% cap · market cap 6.63%
Theoretical Best
Office A
$13.55M
$11.85M – $15.81M
NOI $948,326 @ 7.0% cap · market cap 9.48%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14 ft
Clear height
36
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
4,432
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92627, CA
61,764
Population
23,286
Households
2.7
Avg Household Size
36
Median Age
42%
College-Educated
85%
High-School Grad
6.4 sq mi
ZIP Area
9,651
Density / Sq Mi
$105,039
Median Household Income
$49,236
Median Earnings
$2,299
Median Rent
$1,074,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Three connected industrial buildings offer office support, warehouse space, and 14+ foot ceilings with paint booths at 116 E 16th.
Where is this flex space located?
The property is located at 116 E 16th Street Costa Mesa, CA.
What is the asking price?
The asking price for this property is $9,999,000.
What are key features of this property?
This property features: Three connected industrial buildings: 110, 116, and 118 E 16th Street in a designated Opportunity Zone; 110 E 16th Street serves as a headquarters for a vintage Ferrari dealer; owner‑user space available; 116 and 118 E 16th Street are occupied by automotive repair shop tenants
