Historic-District Storefront
For Sale
$2,050,000
506 E 1st St Santa, Santa Ana, CA 92701
Seller leaseback for three years is available, or the building can be delivered vacant after a long escrow.
Property Size6,750 SF
Lot Size0.16 Acres
Price / SF$303.70
Days on Market193
Property Features for 506 E 1st St Santa
General Information
Standard status
Active
Size
6,750 SF
Lot size
0.16 Acres
Property subtype
Street Retail
Additional Details
Highway Access
Yes
Building Details
Building Size
6,750 SF
Year Built
1928
Buildings
1
Listing Agency:
NAI Capital Commercial, Inc
(310) 878-6895
Listed By:
Ramzy Prado
(310) 878-6895
Source:
Thebrokerlist
Added: Feb 18
Changed: Aug 30
Last Checked: Aug 30 at 11:01AM
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 NAI Capital Commercial, Inc
Investment Insights
Based on property information with market context.
Built in 1928, this 6,750-square-foot storefront retail building occupies a 7,000-square-foot lot in Santa Ana’s Historic Downtown district. The well-kept property is positioned within an established retail corridor and offers a configuration suitable for continued retail use.
The seller is seeking a three-year leaseback, while a vacant delivery may be available with a long escrow. The property’s location at 506 E 1st St places it within the downtown area and supports both owner-user and investment-oriented ownership strategies.
The seller is seeking a three-year leaseback, while a vacant delivery may be available with a long escrow. The property’s location at 506 E 1st St places it within the downtown area and supports both owner-user and investment-oriented ownership strategies.
Key Highlights
- 6,750‑square‑foot storefront retail building on a 7,000‑square‑foot lot
- Built in 1928
- Located in Santa Ana’s Historic Downtown district
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
$112,878
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
5.51%
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%
$2,257,560
$2.3M
Cap Rate 7%
$1,612,543
$1.6M
Cap Rate 9%
$1,254,200
$1.3M
Market Conditions
NOI Build-Up for 6,750 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
$170.1K $25.20/SF
− Vacancy
−$8.8K −$1.31/SF
EGI
$161.3K $23.89/SF
− OpEx
−$48.4K −$7.17/SF
NOI
$112.9K $16.72/SF
Area
ZIP 92701
Vacancy
5.20%
Lease Rate
$25.20 /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%
$2,257,560
Cap Rate 7%
$1,612,543
Cap Rate 9%
$1,254,200
Alternative Uses
Best Use
Retail
$1.61M
$1.41M – $1.88M
NOI $112,878 @ 7.0% cap · market cap 5.51%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$2.09M
$1.83M – $2.44M
NOI $146,201 @ 7.0% cap · market cap 7.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
3,557
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 92701, CA
48,789
Population
13,470
Households
3.6
Avg Household Size
32
Median Age
11%
College-Educated
62%
High-School Grad
3.2 sq mi
ZIP Area
15,247
Density / Sq Mi
$68,697
Median Household Income
$33,846
Median Earnings
$1,650
Median Rent
$608,300
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?
Storefront property - Seller leaseback for three years is available, or the building can be delivered vacant after a long escrow.
Where is this storefront property located?
The property is located at 506 E 1st St Santa Santa Ana, CA.
What is the asking price?
The asking price for this property is $2,050,000.
What are key features of this property?
This property features: 6,750‑square‑foot storefront retail building on a 7,000‑square‑foot lot; Built in 1928; Located in Santa Ana’s Historic Downtown district
