Mixed-Use Asset in
For Sale
$3,288,000
1625 Palmetto Avenue, Pacifica, CA 94044
Mixed-use property in Pacifica, CA, near San Francisco.
Property Size7,480 SF
Lot Size0.25 Acres
Price / SF$439.57
Days on Market198
Property Features for 1625 Palmetto Avenue
General Information
Standard status
Active
Size
7,480 SF
Lot size
0.25 Acres
Property subtype
Commercial
Amenities
Attached Garage
Parking Area
Shingle Roof
Wall Furnace Heating
Building Details
Year Built
1981
Listing Agency:
MARCUS & MILLICHAP
(650) 391-1700
Listed By:
COLE SIMPSON · License #(S):CA:02016525
Source:
Corcoran
Added: Feb 5
Changed: Aug 15
Last Checked: Aug 21 at 7:51AM
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 MARCUS & MILLICHAP
Investment Insights
Based on property information with market context.
The property at 1625 Palmetto Ave is a mixed-use asset in Pacifica, California. Constructed in 1981, the building has a gross area of approximately 7,480 square feet and is situated on a 10,835 square foot parcel of land. The property features one-bedroom and retail floor plans. Tenants have access to private balconies, garage parking, and an on-site laundry facility. Pacifica is a beachfront city located fifteen minutes from San Francisco. Highway 1 provides access to SFO and San Jose International. The city offers hiking trails at Mori Point, Milagra Ridge, and Sweeney Ridge, as well as beaches along the shoreline at Rockaway Beach and Sharp Park Beach. Pacifica is a location for families, with school districts and high value homes.
Key Highlights
- Mixed‑use property in desirable Pacifica, CA, near San Francisco.
- 7,480 sq ft building on a 10,835 sq ft lot.
- Features beautifully designed one‑bedroom and retail floor plans.
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
$241,632
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
7.35%
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%
$4,832,640
$4.8M
Cap Rate 7%
$3,451,886
$3.5M
Cap Rate 9%
$2,684,800
$2.7M
Market Conditions
NOI Build-Up for 7,480 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
$513.4K $68.64/SF
− Vacancy
−$126.8K −$16.95/SF
EGI
$386.6K $51.69/SF
− OpEx
−$145.0K −$19.38/SF
NOI
$241.6K $32.30/SF
Area
San Mateo County, CA
Vacancy
24.70%
Lease Rate
$68.64 /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%
$4,832,640
Cap Rate 7%
$3,451,886
Cap Rate 9%
$2,684,800
Alternative Uses
Best Use
Mixed Use
$3.45M
$3.02M – $4.03M
NOI $241,632 @ 7.0% cap · market cap 7.35%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$5.94M
$5.20M – $6.93M
NOI $415,902 @ 7.0% cap · market cap 12.65%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
539
Businesses Nearby
Explore this area
Business Placement
Demographics for 94044, CA
38,675
Population
14,609
Households
2.6
Avg Household Size
43
Median Age
48%
College-Educated
96%
High-School Grad
15.1 sq mi
ZIP Area
2,561
Density / Sq Mi
$156,658
Median Household Income
$75,296
Median Earnings
$3,075
Median Rent
$1,211,700
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property in Pacifica, CA, near San Francisco.
Where is this mixed-use property located?
The property is located at 1625 Palmetto Avenue Pacifica, CA.
What is the asking price?
The asking price for this property is $3,288,000.
What are key features of this property?
This property features: Mixed‑use property in desirable Pacifica, CA, near San Francisco.; 7,480 sq ft building on a 10,835 sq ft lot.; Features beautifully designed one‑bedroom and retail floor plans.
