Corner-Lot Restaurant
For Sale
$775,000
120 E Foster Rd, Santa Maria, CA 93455
Established restaurant property with Highway 135 exposure on a corner lot.
Property Size2,500 SF
Lot Size0.25 Acres
Price / SF$310
Days on Market382
Property Features for 120 E Foster Rd
General Information
Standard status
Active
Size
2,500 SF
Lot size
0.25 Acres
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Listing Agency:
CR Commercial Real Estate
(805) 938-7474
Listed By:
Clifford Rhea
Source:
Santaynezvalleyhomesforsale
Added: Aug 14, 2025
Changed: Aug 29
Last Checked: Aug 29 at 8:32PM
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 CR Commercial Real Estate
Investment Insights
Based on property information with market context.
This conventional restaurant property contains 2500 square feet of space with occupancy for 64. The building is positioned on a .25-acre corner parcel and has operated as a restaurant for nearly four decades. The current owners have managed the establishment for over two decades, providing a long operating history at the site.
Located at 120 E Foster Rd in Santa Maria, the property fronts Highway 135 and is adjacent to the proposed Richardson Ranch development. Its established restaurant use, corner-lot position, and connection to planned nearby development define the property’s physical and locational profile.
Located at 120 E Foster Rd in Santa Maria, the property fronts Highway 135 and is adjacent to the proposed Richardson Ranch development. Its established restaurant use, corner-lot position, and connection to planned nearby development define the property’s physical and locational profile.
Key Highlights
- 2500‑square‑foot conventional restaurant property
- 64‑person occupancy
- Located on a .25‑acre corner lot
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
$39,544
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
5.10%
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%
$790,880
$790.9K
Cap Rate 7%
$564,914
$564.9K
Cap Rate 9%
$439,378
$439.4K
Market Conditions
NOI Build-Up for 2,500 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
$57.0K $22.80/SF
− Vacancy
−$4.3K −$1.71/SF
EGI
$52.7K $21.09/SF
− OpEx
−$13.2K −$5.27/SF
NOI
$39.5K $15.82/SF
Area
Santa Maria, CA
Vacancy
7.50%
Lease Rate
$22.80 /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%
$790,880
Cap Rate 7%
$564,914
Cap Rate 9%
$439,378
Alternative Uses
Best Use
Specialty Retail
$564.9K
$494.3K – $659.1K
NOI $39,544 @ 7.0% cap · market cap 5.10%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$844.8K
$739.2K – $985.6K
NOI $59,136 @ 7.0% cap · market cap 7.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
161
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93455, CA
45,282
Population
16,087
Households
2.8
Avg Household Size
40
Median Age
32%
College-Educated
89%
High-School Grad
118.3 sq mi
ZIP Area
383
Density / Sq Mi
$108,501
Median Household Income
$53,120
Median Earnings
$2,267
Median Rent
$572,700
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant property with Highway 135 exposure on a corner lot.
Where is this conventional restaurant located?
The property is located at 120 E Foster Rd Santa Maria, CA.
What is the asking price?
The asking price for this property is $775,000.
What are key features of this property?
This property features: 2500‑square‑foot conventional restaurant property; 64‑person occupancy; Located on a .25‑acre corner lot
