Vacant Victorian Restaurant With
For Sale
$2,549,000
418 Cedar Street, Santa Cruz, CA 95060
Restored Victorian offers street-level restaurant space with a wrap-around patio and a 3-bedroom apartment above.
Property Size3,634 SF
Price / SF$701.43
Days on Market1705
Property Features for 418 Cedar Street
General Information
Standard status
Active
Size
3,634 SF
Property subtype
Commercial
Additional Details
Road Access
Yes
Multifamily Units
1
Building Details
Stories
2
Listing Agency:
Intero Real Estate Services
Listed By:
John Stege · License #01927918
(408) 357-5700
Source:
Sevengables
Added: Jan 4, 2022
Changed: Sep 4
Last Checked: Sep 4 at 10:21AM
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 Intero Real Estate Services
Investment Insights
Based on property information with market context.
Totally restored vacant Victorian building configured with restaurant space on the lower level and a 3-bedroom apartment on the upper level. The restaurant space is 2,088 square feet, and the apartment above is 1,546 square feet.
Located at 418 Cedar St in the heart of downtown Santa Cruz, the property includes a wrap-around patio and is described as having excellent frontage, supporting visibility and street presence.
Located at 418 Cedar St in the heart of downtown Santa Cruz, the property includes a wrap-around patio and is described as having excellent frontage, supporting visibility and street presence.
Key Highlights
- Totally restored vacant Victorian in the heart of downtown Santa Cruz
- Street‑level restaurant space with 2,088 SF
- 3‑bedroom apartment above totaling 1,546 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
$140,260
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
5.50%
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%
$2,805,200
$2.8M
Cap Rate 7%
$2,003,714
$2.0M
Cap Rate 9%
$1,558,444
$1.6M
Market Conditions
NOI Build-Up for 3,634 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
$196.2K $54.00/SF
− Vacancy
−$9.2K −$2.54/SF
EGI
$187.0K $51.46/SF
− OpEx
−$46.8K −$12.87/SF
NOI
$140.3K $38.60/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$54.00 /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%
$2,805,200
Cap Rate 7%
$2,003,714
Cap Rate 9%
$1,558,444
Alternative Uses
Best Use
Specialty Retail
$2.00M
$1.75M – $2.34M
NOI $140,260 @ 7.0% cap · market cap 5.50%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$2.08M
$1.82M – $2.42M
NOI $145,454 @ 7.0% cap · market cap 5.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
3,964
Businesses Nearby
123k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 44%
Shops & Services 30%
Apparel 14%
Dining 5%
Trader Joe's
Groceries
53,820 visits/mo
0.3 miles
Wells Fargo
Shops & Services
9,361 visits/mo
0.4 miles
7-Eleven
Shops & Services
9,326 visits/mo
0.2 miles
Chevron
Shops & Services
7,019 visits/mo
0.4 miles
Goodwill
Apparel
6,284 visits/mo
0.3 miles
Demographics for 95060, CA
47,931
Population
20,181
Households
2.4
Avg Household Size
39
Median Age
55%
College-Educated
94%
High-School Grad
54.5 sq mi
ZIP Area
879
Density / Sq Mi
$106,040
Median Household Income
$46,231
Median Earnings
$2,356
Median Rent
$1,189,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restored Victorian offers street-level restaurant space with a wrap-around patio and a 3-bedroom apartment above.
Where is this conventional restaurant located?
The property is located at 418 Cedar Street Santa Cruz, CA.
What is the asking price?
The asking price for this property is $2,549,000.
What are key features of this property?
This property features: Totally restored vacant Victorian in the heart of downtown Santa Cruz; Street‑level restaurant space with 2,088 SF; 3‑bedroom apartment above totaling 1,546 SF
