Building Details

Year Built 1936

Listing Agency: Century 21 Select Real Estate t***@c21selectgroup.com Show Phone

Listed By: Teri A. Garcia · License #01363526 Show Phone

Source: Exitrealty

Added: Sep 5, 2024 Changed: Aug 29 Last Checked: Aug 30 at 3:38PM

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Investment Insights

Based on property information with market context.

This mixed-use property, built in 1936, combines several distinct income-producing and commercial components. The improvements include a restaurant/market, the Clipper Mills/Strawberry Post Office, two rental residences with two bedrooms each, an additional flexible-use unit, and a former laundromat requiring work.

The property also contains a former Ford dealership building that is no longer habitable and may support future redevelopment. Its combination of retail, service, office, and residential elements creates a varied property profile at 12225 La Porte Road in Clipper Mills, California.

Key Highlights

• Restaurant/market included in the mixed‑use property
• Clipper Mills/Strawberry Post Office on site
• Two rental residences, each with two bedrooms

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

$23,358

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

6.77%

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%

$467,160 $467.2K

Cap Rate 7%

$333,686 $333.7K

Cap Rate 9%

$259,533 $259.5K

Market Conditions

NOI Build-Up for 1,000 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

$37.2K $37.20/SF

− Vacancy

−$3.8K −$3.83/SF

EGI

$33.4K $33.37/SF

− OpEx

−$10.0K −$10.01/SF

NOI

$23.4K $23.36/SF

Area

Butte County, CA

Vacancy

10.30%

Lease Rate

$37.20 /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%

$467,160

Cap Rate 7%

$333,686

Cap Rate 9%

$259,533

Alternative Uses

Best Use

Retail

$333.7K

$292.0K – $389.3K (±1% cap)

NOI $23,358 @ 7.0% cap · market cap 6.77%

Second Best

Specialty Retail

$297.5K

$260.4K – $347.1K (±1% cap)

NOI $20,828 @ 7.0% cap · market cap 6.04%

Theoretical Best

Office A

$464.8K

$406.7K – $542.3K (±1% cap)

NOI $32,535 @ 7.0% cap · market cap 9.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

United States Postal ... Post Office

Suggested Use

Top Pick Auto Parts Store Storage Facility Restaurant

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

15

Businesses Nearby

Explore this area Business Placement

Demographics for 95930, CA

253

Population

154

Households

1.6

Avg Household Size

57

Median Age

100%

High-School Grad

7.5 sq mi

ZIP Area

34

Density / Sq Mi

$70,292

Median Earnings

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Includes a restaurant/market, post office, rental units, and additional commercial spaces.

Where is this mixed-use property located?

The property is located at 12225 La Porte Road Clipper Mills, CA.

What is the asking price?

The asking price for this property is $345,000.

What are key features of this property?

This property features: Restaurant/market included in the mixed‑use property; Clipper Mills/Strawberry Post Office on site; Two rental residences, each with two bedrooms