Kearny Mesa Multi-Tenant Office
For Sale
$4,750,000
4565 Ruffner St, San Diego, CA 92111
Two-story office building near Convoy Street, fully occupied by 27 tenants.
Property Size15,974 SF
Price / SF$297.36
Days on Market93
Property Features for 4565 Ruffner St
General Information
Standard status
Active
Size
15,974 SF
Property subtype
Office
Amenities
Located next to Convoy Street, one of San Diego's busiest commercial corridors
Close proximity to major national retailers including 24-Hour Fitness, CarMax, and Target
Owner-user ability with short term leases in place
Building Details
Building Size
15,974 SF
Year Built
1981
Listing Agency:
Marcus & Millichap | San Diego
(858) 373-3140
Listed By:
Peter Eltaeb · License #License(s): CA: 02143936
(858) 373-3140
Source:
Marcusmillichap
Added: Jun 1
Changed: Aug 17
Last Checked: Aug 31 at 12:45PM
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 | San Diego
Investment Insights
Based on property information with market context.
The two-story, multi-tenant office building at 4565 Ruffner Street is situated adjacent to Convoy Street, with immediate access to Interstate 805. The building has a total area of 15,974 square feet and is currently 100% occupied by 27 tenants. The property generates $237,116 in annual net operating income. The building has maintained over 90% occupancy for over 10 years, and all tenants are on short-term leases.
Key Highlights
- Prime Kearny Mesa location adjacent to Convoy Street with immediate access to Interstate 805
- Stable in‑place income of $237,116 annual NOI at a 5.00% CAP rate
- Significant rental upside with in‑place rents at $23.62/SF compared to submarket comps at $29.55/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
$308,378
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
6.49%
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%
$6,167,560
$6.2M
Cap Rate 7%
$4,405,400
$4.4M
Cap Rate 9%
$3,426,422
$3.4M
Market Conditions
NOI Build-Up for 15,974 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
$479.2K $30.00/SF
− Vacancy
−$68.0K −$4.26/SF
EGI
$411.2K $25.74/SF
− OpEx
−$102.8K −$6.44/SF
NOI
$308.4K $19.31/SF
Area
San Diego, CA
Vacancy
14.20%
Lease Rate
$30.00 /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%
$6,167,560
Cap Rate 7%
$4,405,400
Cap Rate 9%
$3,426,422
Alternative Uses
Best Use
Office B
$4.41M
$3.85M – $5.14M
NOI $308,378 @ 7.0% cap · market cap 6.49%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$6.31M
$5.52M – $7.36M
NOI $441,649 @ 7.0% cap · market cap 9.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,634
Businesses Nearby
Explore this area
Business Placement
Demographics for 92111, CA
46,686
Population
17,624
Households
2.6
Avg Household Size
37
Median Age
43%
College-Educated
88%
High-School Grad
8.5 sq mi
ZIP Area
5,492
Density / Sq Mi
$95,081
Median Household Income
$43,215
Median Earnings
$2,049
Median Rent
$754,300
Median Home Value
Market
Vacancy Rate% for Office in San Diego, CA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Two-story office building near Convoy Street, fully occupied by 27 tenants.
Where is this office building located?
The property is located at 4565 Ruffner St San Diego, CA.
What is the asking price?
The asking price for this property is $4,750,000.
What are key features of this property?
This property features: Prime Kearny Mesa location adjacent to Convoy Street with immediate access to Interstate 805; Stable in‑place income of $237,116 annual NOI at a 5.00% CAP rate; Significant rental upside with in‑place rents at $23.62/SF compared to submarket comps at $29.55/SF
