Industrial Redevelopment
For Sale
Contact for pricing
Pending
1194 Lick Avenue, San Jose, CA 95110
Mixed-use neighborhood zoning offers development flexibility for commercial, residential, or mixed-use projects on this San Jose parcel.
Property Size4,800 SF
Days on Market93
Property Features for 1194 Lick Avenue
General Information
Standard status
Pending
Size
4,800 SF
Property subtype
Industrial
Zoning
Mixed-Use Neighborhood (MUN)
Investment Type
Owner/User
Additional Details
Multifamily Units
9
Building Details
Year Built
1920
Listing Agency:
Marcus & Millichap - Palo Alto
(650) 391-1807
Listed By:
Yuri Sergunin, CCIM · License #01908322
Source:
Crexi
Added: Jun 1
Changed: Aug 8
Last Checked: Jul 24 at 5:51PM
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 Marcus & Millichap - Palo Alto
Investment Insights
Based on property information with market context.
The property at 1194 Lick Avenue is zoned Mixed-Use Neighborhood (MUN), supporting a range of development options including 100% commercial, 100% residential, or mixed-use development. The parcel is approximately 14,127 square feet, and the property size is listed as 4,800 square feet. Under the MUN zoning density framework described for this site, the base allowable residential density supports a 9-unit condominium development, with density rounded up to 10 units under California’s State Density Bonus Law as outlined in the remarks.
The MUN district also references potential eligibility for a density bonus of up to 100% under AB 2345 and AB 1287, which may increase the total to as many as 20 residential units, subject to meeting affordability requirements and other stated eligibility criteria. The remarks further note that rezoning the property to a Planned Development (PD) district could provide additional flexibility and support higher densities, along with a broader array of development opportunities tailored to project goals.
For buyers and developers evaluating an industrial-type site with zoning-driven residential and commercial paths, this offering centers on MUN entitlement flexibility. The documented density parameters and the potential for bonus density and/or PD rezoning provide a clear framework for assembling a feasible development plan aligned with the buyer’s target unit count and mix.
The MUN district also references potential eligibility for a density bonus of up to 100% under AB 2345 and AB 1287, which may increase the total to as many as 20 residential units, subject to meeting affordability requirements and other stated eligibility criteria. The remarks further note that rezoning the property to a Planned Development (PD) district could provide additional flexibility and support higher densities, along with a broader array of development opportunities tailored to project goals.
For buyers and developers evaluating an industrial-type site with zoning-driven residential and commercial paths, this offering centers on MUN entitlement flexibility. The documented density parameters and the potential for bonus density and/or PD rezoning provide a clear framework for assembling a feasible development plan aligned with the buyer’s target unit count and mix.
Key Highlights
- San Jose parcel at 1194 Lick Avenue (APN 434‑05‑078) with Mixed‑Use Neighborhood (MUN) zoning
- MUN zoning permits 100% commercial, 100% residential, or mixed‑use developments
- Parcel size is approximately 14,127 SF
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
$97,285
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
5.56%
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%
$1,945,700
$1.9M
Cap Rate 7%
$1,389,786
$1.4M
Cap Rate 9%
$1,080,944
$1.1M
Market Conditions
NOI Build-Up for 4,800 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
$123.8K $25.80/SF
− Vacancy
−$9.4K −$1.96/SF
EGI
$114.5K $23.84/SF
− OpEx
−$17.2K −$3.58/SF
NOI
$97.3K $20.27/SF
Area
San Jose, CA
Vacancy
7.58%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
15.00%
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%
$1,945,700
Cap Rate 7%
$1,389,786
Cap Rate 9%
$1,080,944
Alternative Uses
Best Use
Warehouse
$1.39M
$1.22M – $1.62M
NOI $97,285 @ 7.0% cap · market cap 5.56%
Second Best
Industrial
$1.14M
$1.00M – $1.34M
NOI $80,117 @ 7.0% cap · market cap 4.58%
Theoretical Best
Office A
$2.90M
$2.54M – $3.38M
NOI $202,921 @ 7.0% cap · market cap 11.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
9
Residential units
Location Intelligence
Trade Area within ½ mile
1,164
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95110, CA
20,495
Population
7,568
Households
2.7
Avg Household Size
35
Median Age
40%
College-Educated
81%
High-School Grad
4.6 sq mi
ZIP Area
4,455
Density / Sq Mi
$132,800
Median Household Income
$60,241
Median Earnings
$2,629
Median Rent
$947,900
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Mixed-use neighborhood zoning offers development flexibility for commercial, residential, or mixed-use projects on this San Jose parcel.
Where is this warehouse located?
The property is located at 1194 Lick Avenue San Jose, CA.
What is the asking price?
The asking price for this property is $1,749,000.
What are key features of this property?
This property features: San Jose parcel at 1194 Lick Avenue (APN 434‑05‑078) with Mixed‑Use Neighborhood (MUN) zoning; MUN zoning permits 100% commercial, 100% residential, or mixed‑use developments; Parcel size is approximately 14,127 SF
