Mixed-Use Property with
For Sale
$1,499,000
1220 1218 E Grand Ave, Arroyo Grande, CA 93420
Mixed-use strip property with a front retail building and three residential units plus dedicated parking areas.
Property Size2,060 SF
Lot Size0.50 Acres
Days on Market68
Property Features for 1220 1218 E Grand Ave
General Information
Standard status
Active
Size
2,060 SF
Lot size
0.50 Acres
Property subtype
Investment
Site & Location
Road Access
Yes
Outdoor Storage
Yes
Additional Details
Multifamily Units
3
Amenities
private fenced front yard
covered patios
common laundry room
RV hookups
large yard
storage
ocean views
Building Details
Building Size
2,060 SF
Year Built
1955
Stories
1
Units
4
Tenancy
Multi
Listing Agency:
Auer Real Estate Inc.
(805) 801-6694
Listed By:
Brenda Auer · License #01984685
(805) 801-6694
Source:
Elliman
Added: Jun 3
Changed: Aug 8
Last Checked: Aug 8 at 11:27AM
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 Auer Real Estate Inc.
Investment Insights
Based on property information with market context.
A 1/2-acre mixed-use property presented as a long strip measuring approximately 70 feet wide and the length of a football field, with three residential units and one commercial unit. At the front is a 350-square-foot commercial building with a paver parking lot; the space has been freshly refinished and is suited for a range of business activities, including retail, food and beverage, office, personal services, or lodging. Three residential units are accessed up the driveway, each with its own dedicated parking and patio areas. The front home is a 2-bedroom, 1-bath unit with a stacked washer/dryer in the bathroom and a private fenced front yard. The back two units are 1-bedroom, 1-bath residences, fully refinished with new cabinets, counters, flooring, fixtures, and tile showers, and they share a common laundry room accessed from their covered patios.
The property is located directly off Grand Ave in the heart of Arroyo Grande, with the front commercial building positioned across the street from Starbucks. The back portion includes a large gravel parking area and a small bonus structure with a wrap-around lanai. It also has RV hookups, a large yard, and significant storage. The top part of the property is described as having ground-level ocean views.
Existing income is described as three residential units currently rented for $7,700 per month, with the commercial space estimated to rent for $2,300 per month, for approximately $10,000 in total gross rents possible on the existing units. The back half is described as offering a blank-slate opportunity, and the seller notes that the back portion may be able to accommodate additional ADUs or be used for business ventures such as a shop or equipment storage, subject to city confirmation and zoning.
The property is located directly off Grand Ave in the heart of Arroyo Grande, with the front commercial building positioned across the street from Starbucks. The back portion includes a large gravel parking area and a small bonus structure with a wrap-around lanai. It also has RV hookups, a large yard, and significant storage. The top part of the property is described as having ground-level ocean views.
Existing income is described as three residential units currently rented for $7,700 per month, with the commercial space estimated to rent for $2,300 per month, for approximately $10,000 in total gross rents possible on the existing units. The back half is described as offering a blank-slate opportunity, and the seller notes that the back portion may be able to accommodate additional ADUs or be used for business ventures such as a shop or equipment storage, subject to city confirmation and zoning.
Key Highlights
- 1/2‑acre mixed‑use property off Grand Ave with 3 residential units and 1 commercial unit
- Front 350 SF commercial building with freshly refinished space and paver parking lot, with dedicated front‑yard access
- Three residences with dedicated parking and patios: front unit is 2 bed/1 bath; back two units are 1 bed/1 bath
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
$43,075
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
2.87%
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%
$861,500
$861.5K
Cap Rate 7%
$615,357
$615.4K
Cap Rate 9%
$478,611
$478.6K
Market Conditions
NOI Build-Up for 2,060 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
$63.0K $30.60/SF
− Vacancy
−$1.5K −$0.73/SF
EGI
$61.5K $29.87/SF
− OpEx
−$18.5K −$8.96/SF
NOI
$43.1K $20.91/SF
Area
San Luis Obispo County, CA
Vacancy
2.38%
Lease Rate
$30.60 /SF/Yr
Expense Ratio
30.00%
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%
$861,500
Cap Rate 7%
$615,357
Cap Rate 9%
$478,611
Alternative Uses
Best Use
Multifamily LT 5
$615.4K
$538.4K – $717.9K
NOI $43,075 @ 7.0% cap · market cap 2.87%
Second Best
Apartment 5plus
$568.1K
$497.1K – $662.8K
NOI $39,768 @ 7.0% cap · market cap 2.65%
Theoretical Best
Healthcare Medical
$810.2K
$708.9K – $945.2K
NOI $56,712 @ 7.0% cap · market cap 3.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,331
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
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use strip property with a front retail building and three residential units plus dedicated parking areas.
Where is this mixed-use property located?
The property is located at 1220 1218 E Grand Ave Arroyo Grande, CA.
What is the asking price?
The asking price for this property is $1,499,000.
What are key features of this property?
This property features: 1/2‑acre mixed‑use property off Grand Ave with 3 residential units and 1 commercial unit; Front 350 SF commercial building with freshly refinished space and paver parking lot, with dedicated front‑yard access; Three residences with dedicated parking and patios: front unit is 2 bed/1 bath; back two units are 1 bed/1 bath
