Arcata Mixed-Use Investment
For Sale
$7,390,000
1385 8th St, Arcata, CA 95521
54,523 SF mixed-use building on 5.33 acres in Arcata.
Property Size54,523 SF
Lot Size5.33 Acres
Price / SF$135.54
Days on Market727
Property Features for 1385 8th St
General Information
Standard status
Active
Size
54,523 SF
Lot size
5.33 Acres
Listing Agency:
Wells Commercial R.E. & Investment
(707) 444-3624
Listed By:
David Wells · License #01700566
(707) 444-3624
Source:
Exprealty
Added: Aug 26, 2024
Changed: Aug 20
Last Checked: Aug 21 at 9:13AM
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 Wells Commercial R.E. & Investment
Investment Insights
Based on property information with market context.
The subject property is a 54,523 square foot mixed-use building, featuring office, medical, and warehouse spaces. Situated on 5.33 acres across three parcels, the property is located within the Arcata Gateway Project, potentially allowing for additional development. Nearby establishments include Holly Yashi, The Pub at The Creamery, and the Arcata Playhouse. The property is fully leased, generating over $54,000 in monthly income, making it a potential 1031 exchange opportunity.
Key Highlights
- Fully leased property generating over $54,000 in monthly income.
- Located within the Arcata Gateway Project, allowing for additional development options.
- Suitable for a 1031 exchange.
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
$552,045
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
7.47%
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%
$11,040,900
$11.0M
Cap Rate 7%
$7,886,357
$7.9M
Cap Rate 9%
$6,133,833
$6.1M
Market Conditions
NOI Build-Up for 54,523 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
$981.4K $18.00/SF
− Vacancy
−$98.1K −$1.80/SF
EGI
$883.3K $16.20/SF
− OpEx
−$331.2K −$6.07/SF
NOI
$552.0K $10.13/SF
Area
Humboldt County, CA
Vacancy
10.00%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
37.50%
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%
$11,040,900
Cap Rate 7%
$7,886,357
Cap Rate 9%
$6,133,833
Alternative Uses
Best Use
Healthcare Medical
$12.90M
$11.29M – $15.05M
NOI $902,901 @ 7.0% cap · market cap 12.22%
Second Best
Office B
$10.15M
$8.88M – $11.84M
NOI $710,151 @ 7.0% cap · market cap 9.61%
Theoretical Best
Flex RnD
$20.59M
$18.02M – $24.02M
NOI $1,441,314 @ 7.0% cap · market cap 19.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,344
Businesses Nearby
Explore this area
Business Placement
Demographics for 95521, CA
21,581
Population
9,797
Households
2.2
Avg Household Size
30
Median Age
45%
College-Educated
95%
High-School Grad
60.4 sq mi
ZIP Area
357
Density / Sq Mi
$54,324
Median Household Income
$24,129
Median Earnings
$1,300
Median Rent
$478,600
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?
Mixed-use property - 54,523 SF mixed-use building on 5.33 acres in Arcata.
Where is this mixed-use property located?
The property is located at 1385 8th St Arcata, CA.
What is the asking price?
The asking price for this property is $7,390,000.
What are key features of this property?
This property features: Fully leased property generating over $54,000 in monthly income.; Located within the Arcata Gateway Project, allowing for additional development options.; Suitable for a 1031 exchange.
