100% Leased Multi-Tenant Shopping
For Sale
Contact for pricing
128 Ranch Drive, Milpitas, CA 95035
Acquired as a fully occupied retail center with a fitness, restaurant, and medical tenant mix near major freeway access.
Property Size84,735 SF
Price / SF$299.05
Days on Market55
Property Features for 128 Ranch Drive
General Information
Standard status
Active
Size
84,735 SF
Total Parking Spaces
900
Property subtype
Retail
Zoning
C2
Occupancy
100%
Investment Type
Stabilized
Net Operating Income
$1,710,500
Building Details
Year Built
1996
Tenancy
Multi
Listing Agency:
Cushman & Wakefield - San Francisco, California
Listed By:
Don LeBuhn · License #CA 01821805
Source:
Crexi
Added: Jun 16
Changed: Aug 8
Last Checked: Aug 8 at 5:41AM
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 Cushman & Wakefield - San Francisco, California
Investment Insights
Based on property information with market context.
McCarthy Ranch Shopping Center is a 100% leased, 84,735-square-foot multi-tenant retail property configured to serve a mix of fitness, dining, and healthcare uses. The tenant roster includes PICKLR, Planet Fitness, HL Peninsula Restaurant, and Gentle Dental. The center is offered with in-place leases and is supported by long-term lease terms, including a weighted average lease term (WALT) of approximately 7.7 years and contractual rent increases.
The property is located in Milpitas, California, within the McCarthy Ranch retail corridor just off the intersection of Interstate 880 and Highway 237. It also benefits from its position inside a dominant retail hub comprising more than 400,000 square feet of surrounding high-traffic retail.
For buyers and investors, the shopping center provides an opportunity to acquire a fully occupied, diversified neighborhood retail asset anchored by fitness and experience-driven concepts, complemented by restaurant and medical tenants. With all space leased and long-term lease rollover considerations reflected in the reported WALT, the property can be evaluated as a stabilized income-producing retail acquisition within a well-established corridor.
The property is located in Milpitas, California, within the McCarthy Ranch retail corridor just off the intersection of Interstate 880 and Highway 237. It also benefits from its position inside a dominant retail hub comprising more than 400,000 square feet of surrounding high-traffic retail.
For buyers and investors, the shopping center provides an opportunity to acquire a fully occupied, diversified neighborhood retail asset anchored by fitness and experience-driven concepts, complemented by restaurant and medical tenants. With all space leased and long-term lease rollover considerations reflected in the reported WALT, the property can be evaluated as a stabilized income-producing retail acquisition within a well-established corridor.
Key Highlights
- McCarthy Ranch Shopping Center is a 100% leased, multi‑tenant retail center with 84,735 SF.
- Anchored by PICKLR and includes fitness, restaurant, and medical tenants such as Planet Fitness, HL Peninsula Restaurant, and Gentle Dental.
- Located in Milpitas, CA near the intersection of I‑880 and Highway 237 within the McCarthy Ranch retail corridor.
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
$2,288,819
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
9.03%
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%
$45,776,380
$45.8M
Cap Rate 7%
$32,697,414
$32.7M
Cap Rate 9%
$25,431,322
$25.4M
Market Conditions
NOI Build-Up for 84,735 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
$3.43M $40.44/SF
− Vacancy
−$156.9K −$1.85/SF
EGI
$3.27M $38.59/SF
− OpEx
−$980.9K −$11.58/SF
NOI
$2.29M $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%
$45,776,380
Cap Rate 7%
$32,697,414
Cap Rate 9%
$25,431,322
Alternative Uses
Best Use
Retail
$32.70M
$28.61M – $38.15M
NOI $2,288,819 @ 7.0% cap · market cap 9.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$51.16M
$44.76M – $59.68M
NOI $3,580,907 @ 7.0% cap · market cap 14.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
740
Businesses Nearby
182k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 51%
Shops & Services 30%
Electronics 18%
Home Improvements & Furnishings 1%
In-N-Out Burger
Dining
67,499 visits/mo
0.4 miles
Best Buy
Electronics
33,371 visits/mo
0.3 miles
McDonald's
Dining
24,926 visits/mo
0.3 miles
Michaels
Shops & Services
24,793 visits/mo
0.2 miles
PetSmart
Shops & Services
21,105 visits/mo
0.2 miles
Demographics for 95035, CA
80,440
Population
25,851
Households
3.1
Avg Household Size
37
Median Age
59%
College-Educated
90%
High-School Grad
22.4 sq mi
ZIP Area
3,591
Density / Sq Mi
$176,723
Median Household Income
$81,070
Median Earnings
$3,110
Median Rent
$1,180,700
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Calaveras Plaza Shopping Center — 231 W Calaveras Blvd, Milpitas, CA 95035
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- McCarthy Ranch Marketplace — Ranch Dr, Milpitas, CA 95035
- Fujiiryoki / Dr Fuji — 762 Barber Ln, Milpitas, CA 95035
Frequently Asked Questions
What type of property is this?
Shopping center - Acquired as a fully occupied retail center with a fitness, restaurant, and medical tenant mix near major freeway access.
Where is this shopping center located?
The property is located at 128 Ranch Drive Milpitas, CA.
What is the asking price?
The asking price for this property is $25,340,000.
What are key features of this property?
This property features: McCarthy Ranch Shopping Center is a 100% leased, multi‑tenant retail center with 84,735 SF.; Anchored by PICKLR and includes fitness, restaurant, and medical tenants such as Planet Fitness, HL Peninsula Restaurant, and Gentle Dental.; Located in Milpitas, CA near the intersection of I‑880 and Highway 237 within the McCarthy Ranch retail corridor.
