Unique Property on Pacheco Pass
For Sale
$995,000
2025 Pacheco Pass Hwy, Gilroy, CA 95020
Operating market, home, cottage, shop, orchard, and farmland.
Property Size2,682 SF
Lot Size1.94 Acres
Days on Market154
Property Features for 2025 Pacheco Pass Hwy
General Information
Standard status
Active
Size
2,682 SF
Lot size
1.94 Acres
Property subtype
Investment
Lease Term
Call to inquire
Taxes and HOA fees
Annual Taxes
$13,750
Building Details
Building Size
2,682 SF
Year Built
1940
Listing Agency:
VICTORIA PROPERTIES
(408) 781-7087
Listed By:
Victor Borelli · License #01070031
(408) 781-7087
Source:
Elliman
Added: Mar 12
Changed: Aug 9
Last Checked: Aug 9 at 11:05PM
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 VICTORIA PROPERTIES
Investment Insights
Based on property information with market context.
This property, located on Pacheco Pass Highway, presents an opportunity with significant income potential. It comprises two parcels being sold together, totaling approximately 2.13 acres. The property features an operating market, a single-family home, a one-bedroom cottage, and a detached shop or barn. Additionally, there is a small orchard and open land suitable for farming. The site benefits from three electrical meters and two gas meters. Parking is available with seven marked stalls and ample additional off-street parking. All units are in move-in condition. The market is currently profitable, with business activity increasing due to the recent installation of a traffic light at the intersection of Pacheco Pass Highway and Fraiser Lake Road. This property is positioned as an investment or owner-user opportunity, located minutes from town and situated in an area slated for future development.
Key Highlights
- Profitable operating market with increased business due to new traffic light.
- Two parcels totaling approximately 2.13 acres with multiple income‑generating structures.
- Includes a single‑family home, 1‑bedroom cottage, and detached shop/barn.
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
$72,445
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
7.28%
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%
$1,448,900
$1.4M
Cap Rate 7%
$1,034,929
$1.0M
Cap Rate 9%
$804,944
$804.9K
Market Conditions
NOI Build-Up for 2,682 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
$108.5K $40.44/SF
− Vacancy
−$5.0K −$1.85/SF
EGI
$103.5K $38.59/SF
− OpEx
−$31.0K −$11.58/SF
NOI
$72.4K $27.01/SF
Area
Santa Clara County, CA
Vacancy
4.58%
Lease Rate
$40.44 /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%
$1,448,900
Cap Rate 7%
$1,034,929
Cap Rate 9%
$804,944
Alternative Uses
Best Use
Retail
$1.03M
$905.6K – $1.21M
NOI $72,445 @ 7.0% cap · market cap 7.28%
Second Best
Specialty Retail
$713.1K
$624.0K – $832.0K
NOI $49,917 @ 7.0% cap · market cap 5.02%
Theoretical Best
Office A
$1.62M
$1.42M – $1.89M
NOI $113,342 @ 7.0% cap · market cap 11.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
857
Businesses Nearby
1.2M
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 30%
Dining 22%
Shops & Services 21%
Apparel 14%
Costco Wholesale
Superstores
150,096 visits/mo
0.4 miles
Walmart
Superstores
117,889 visits/mo
0.5 miles
Target
Superstores
79,161 visits/mo
0.3 miles
Costco Gasoline
Shops & Services
70,273 visits/mo
0.3 miles
Marshalls
Apparel
55,324 visits/mo
0.3 miles
Demographics for 95020, CA
68,090
Population
20,679
Households
3.3
Avg Household Size
37
Median Age
28%
College-Educated
83%
High-School Grad
151.8 sq mi
ZIP Area
449
Density / Sq Mi
$134,242
Median Household Income
$50,421
Median Earnings
$2,256
Median Rent
$1,005,600
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?
Grocery and convenience store - Operating market, home, cottage, shop, orchard, and farmland.
Where is this grocery and convenience store located?
The property is located at 2025 Pacheco Pass Hwy Gilroy, CA.
What is the asking price?
The asking price for this property is $995,000.
What are key features of this property?
This property features: Profitable operating market with increased business due to new traffic light.; Two parcels totaling approximately 2.13 acres with multiple income‑generating structures.; Includes a single‑family home, 1‑bedroom cottage, and detached shop/barn.
