Corner Office
For Sale
$495,000
3901 Macdonald Avenue, Richmond, CA 94805
Corner office building offering two suites with private entrances and rear off-street parking.
Property Size2,750 SF
Lot Size0.11 Acres
Price / SF$180
Days on Market956
Property Features for 3901 Macdonald Avenue
General Information
Standard status
Active
Size
2,750 SF
Total Parking Spaces
8
Lot size
0.11 Acres
Zoning
comm
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Office Units
2
Amenities
monument sign
Building Details
Year Built
1963
Listing Agency:
Security Pacific Real Estate
(510) 851-4663
Listed By:
Pat Prendiville · License #00554722
(510) 851-4663
Source:
Compass
Added: Jan 16, 2024
Changed: Aug 23
Last Checked: Aug 26 at 1:41PM
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 Security Pacific Real Estate
Investment Insights
Based on property information with market context.
This corner office building includes two offices, each approximately 1,375 SF, and each with its own private entrance. The layout can also be combined to form one larger office space of approximately 2,750 SF. A monument sign is already installed for business advertising, and private off-street parking is located at the rear of the building.
The property is positioned on Macdonald Avenue, described as a major street in the heart of Richmond. It is also noted as being within two blocks of a Target-anchored shopping center and within walking distance of the Contra Costa Supreme Court. The remarks state easy access to I-880, with public transportation available on San Pablo Ave, and Del Norte BART is listed as within about 2 miles.
The lot is approximately 5,000 SF. The building’s configuration is well suited for either separate tenant use or consolidation into a single office, depending on operational needs.
The property is positioned on Macdonald Avenue, described as a major street in the heart of Richmond. It is also noted as being within two blocks of a Target-anchored shopping center and within walking distance of the Contra Costa Supreme Court. The remarks state easy access to I-880, with public transportation available on San Pablo Ave, and Del Norte BART is listed as within about 2 miles.
The lot is approximately 5,000 SF. The building’s configuration is well suited for either separate tenant use or consolidation into a single office, depending on operational needs.
Key Highlights
- Corner office building with 2 offices, approx. 1,375 SF each, each with its own private entrance
- Can be combined into one larger office with approx. 2,750 SF
- Great monument sign already installed for business advertising
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
$34,099
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
6.89%
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%
$681,980
$682.0K
Cap Rate 7%
$487,129
$487.1K
Cap Rate 9%
$378,878
$378.9K
Market Conditions
NOI Build-Up for 2,750 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
$54.5K $19.80/SF
− Vacancy
−$9.0K −$3.27/SF
EGI
$45.5K $16.53/SF
− OpEx
−$11.4K −$4.13/SF
NOI
$34.1K $12.40/SF
Area
Richmond, CA
Vacancy
16.50%
Lease Rate
$19.80 /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%
$681,980
Cap Rate 7%
$487,129
Cap Rate 9%
$378,878
Alternative Uses
Best Use
Office B
$487.1K
$426.2K – $568.3K
NOI $34,099 @ 7.0% cap · market cap 6.89%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$657.0K
$574.8K – $766.5K
NOI $45,987 @ 7.0% cap · market cap 9.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,108
Businesses Nearby
Explore this area
Business Placement
Demographics for 94805, CA
14,958
Population
6,076
Households
2.5
Avg Household Size
41
Median Age
44%
College-Educated
86%
High-School Grad
1.9 sq mi
ZIP Area
7,873
Density / Sq Mi
$114,191
Median Household Income
$57,133
Median Earnings
$2,272
Median Rent
$738,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Corner office building offering two suites with private entrances and rear off-street parking.
Where is this office units located?
The property is located at 3901 Macdonald Avenue Richmond, CA.
What is the asking price?
The asking price for this property is $495,000.
What are key features of this property?
This property features: Corner office building with 2 offices, approx. 1,375 SF each, each with its own private entrance; Can be combined into one larger office with approx. 2,750 SF; Great monument sign already installed for business advertising
