Newport Beach Commercial Building For
For Sale
$2,000,000
1520 W Coast Hwy, Newport Beach, CA 92663
Free-standing commercial building in Mariners Mile district.
Property Size2,880 SF
Lot Size0.30 Acres
Price / SF$694.44
Days on Market167
Property Features for 1520 W Coast Hwy
General Information
Standard status
Active
Size
2,880 SF
Lot size
0.30 Acres
Property subtype
Office
Building Details
Building Size
2,880 SF
Listing Agency:
Coldwell Banker Commercial BLAIR
(562) 495-6070
Listed By:
Marie Castano · License #01922147
Source:
Cbcworldwide
Added: Mar 5
Changed: Aug 14
Last Checked: Aug 14 at 7:22AM
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 Coldwell Banker Commercial BLAIR
Investment Insights
Based on property information with market context.
The property at 1520 W. Coast Highway in Newport Beach, California, is a free-standing commercial building with approximately 2,880 square feet of space. A smaller portion of the second floor is dedicated to office use, while the majority of the space is on the ground floor, making it suitable for a wide range of commercial uses. The building sits on approximately 13,068 square feet of land and is positioned on a ground lease with a long-term land lease in place, which includes twelve five-year renewal options extending the sublease to the year 2078. The ground lease monthly rent is currently set at $7,900 per month, with a 15% increase on the first day of each option term. The property includes 14 parking spaces evenly distributed on both sides and offers excellent visibility and access via West Coast Highway (Pacific Coast Highway/State Route 1) and nearby major freeways, including the 55, 73, and 405. Located in the vibrant Mariners Mile district, the property is surrounded by a diverse mix of retail, dining, and service-oriented businesses, such as Billy’s at the Beach, Sol Grill, and Thermador Repair Group, creating a dynamic commercial environment. The ground floor offers wide-ranging potential uses, including medical and dental offices, ambulance services, animal grooming, catering services, auto sales, repair, and washing, barber shops, beauty salons, restaurants, retail, health and fitness centers, outpatient surgery centers, and banking facilities, making this property highly adaptable for professional offices, retail, hospitality, and other commercial ventures. The property is vacant and may be remodeled or redeveloped to meet a buyer’s specific needs.
Key Highlights
- Long‑term land lease extending to 2078 with renewal options.
- Prime location on West Coast Highway in the vibrant Mariners Mile district.
- Versatile 2,880 SF free‑standing commercial building suitable for diverse uses.
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
$56,635
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
2.83%
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%
$1,132,700
$1.1M
Cap Rate 7%
$809,071
$809.1K
Cap Rate 9%
$629,278
$629.3K
Market Conditions
NOI Build-Up for 2,880 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
$86.1K $29.88/SF
− Vacancy
−$10.5K −$3.66/SF
EGI
$75.5K $26.22/SF
− OpEx
−$18.9K −$6.55/SF
NOI
$56.6K $19.66/SF
Area
Orange County, CA
Vacancy
12.25%
Lease Rate
$29.88 /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%
$1,132,700
Cap Rate 7%
$809,071
Cap Rate 9%
$629,278
Alternative Uses
Best Use
Office B
$809.1K
$707.9K – $943.9K
NOI $56,635 @ 7.0% cap · market cap 2.83%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$967.3K
$846.4K – $1.13M
NOI $67,713 @ 7.0% cap · market cap 3.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,108
Businesses Nearby
Explore this area
Business Placement
Demographics for 92663, CA
20,812
Population
12,348
Households
1.7
Avg Household Size
42
Median Age
64%
College-Educated
97%
High-School Grad
3.3 sq mi
ZIP Area
6,307
Density / Sq Mi
$138,271
Median Household Income
$77,157
Median Earnings
$2,717
Median Rent
$2,000,001
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 building - Free-standing commercial building in Mariners Mile district.
Where is this office building located?
The property is located at 1520 W Coast Hwy Newport Beach, CA.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Long‑term land lease extending to 2078 with renewal options.; Prime location on West Coast Highway in the vibrant Mariners Mile district.; Versatile 2,880 SF free‑standing commercial building suitable for diverse uses.
