Flat-Acreage Duplex
For Sale
$849,000
16255 Walnut, Atascadero, CA 93422
Two tenant-occupied residences share separate utilities, laundry areas, septic systems, and wood-burning stoves on a rural residential parcel.
Property Size2,511 SF
Lot Size1.40 Acres
Days on Market10
Property Features for 16255 Walnut
General Information
Standard status
Active
Size
2,511 SF
Lot size
1.40 Acres
Property subtype
Investment
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Utilities to Site
Yes
Units
Unit Mix
1 x 2BR/2BA, 1 x 2BR/1.5BA
Multifamily Units
2
Building Details
Building Size
2,511 SF
Year Built
1956
Buildings
2
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
eXp Realty of Greater Los Angeles, Inc
(805) 549-0899
Listed By:
Risa Brown · License #01926264
(805) 549-0899
Source:
Elliman
Added: Aug 22
Changed: Aug 30
Last Checked: Aug 30 at 7:14PM
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 eXp Realty of Greater Los Angeles, Inc
Investment Insights
Based on property information with market context.
This duplex property comprises two separate residences on 1.4 completely flat, usable acres. The primary home was built in 1956 and includes two bedrooms and two bathrooms, newer flooring and paint, interior laundry, and a wood-burning stove. A second residence contains two bedrooms and one-and-a-half bathrooms and was converted from a Dunn barn in the 1980s. It offers separate utilities, laundry, and a wood-burning stove, with renovation and personalization work noted in the property information. Both residences are tenant occupied. The second home is recognized as a dwelling by the Assessor’s Office but is not recognized as a permitted dwelling by the Building Department; buyers should independently evaluate use and improvements.
The parcel includes pasture areas, mature trees, established landscaping, apricot and apple trees, and full fencing. Walnut Street serves as the primary access, while frontage along El Camino Real provides additional rear access. Two separate septic systems serve the residences; the main-home system was replaced in 2021, and the barn-home system was pumped and inspected at that time. The property is located in Garden Farms between Atascadero and Santa Margarita, with access to Highway 101.
The parcel includes pasture areas, mature trees, established landscaping, apricot and apple trees, and full fencing. Walnut Street serves as the primary access, while frontage along El Camino Real provides additional rear access. Two separate septic systems serve the residences; the main-home system was replaced in 2021, and the barn-home system was pumped and inspected at that time. The property is located in Garden Farms between Atascadero and Santa Margarita, with access to Highway 101.
Key Highlights
- Two separate tenant‑occupied residences on 1.4 completely flat, usable acres
- Primary home built in 1956 with 2 bedrooms and 2 bathrooms
- Second residence has 2 bedrooms and 1.5 bathrooms; converted from a Dunn barn in the 1980s
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
$52,506
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
6.18%
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%
$1,050,120
$1.1M
Cap Rate 7%
$750,086
$750.1K
Cap Rate 9%
$583,400
$583.4K
Market Conditions
NOI Build-Up for 2,511 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
$76.8K $30.60/SF
− Vacancy
−$1.8K −$0.73/SF
EGI
$75.0K $29.87/SF
− OpEx
−$22.5K −$8.96/SF
NOI
$52.5K $20.91/SF
Area
San Luis Obispo County, CA
Vacancy
2.38%
Lease Rate
$30.60 /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%
$1,050,120
Cap Rate 7%
$750,086
Cap Rate 9%
$583,400
Alternative Uses
Best Use
Multifamily LT 5
$750.1K
$656.3K – $875.1K
NOI $52,506 @ 7.0% cap · market cap 6.18%
Second Best
Apartment 5plus
$692.5K
$605.9K – $807.9K
NOI $48,475 @ 7.0% cap · market cap 5.71%
Theoretical Best
Healthcare Medical
$987.5K
$864.1K – $1.15M
NOI $69,128 @ 7.0% cap · market cap 8.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
38
Businesses Nearby
Explore this area
Business Placement
Demographics for 93422, CA
33,041
Population
13,702
Households
2.4
Avg Household Size
42
Median Age
31%
College-Educated
93%
High-School Grad
68.8 sq mi
ZIP Area
480
Density / Sq Mi
$89,916
Median Household Income
$46,939
Median Earnings
$1,841
Median Rent
$692,100
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Two tenant-occupied residences share separate utilities, laundry areas, septic systems, and wood-burning stoves on a rural residential parcel.
Where is this duplex located?
The property is located at 16255 Walnut Atascadero, CA.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: Two separate tenant‑occupied residences on 1.4 completely flat, usable acres; Primary home built in 1956 with 2 bedrooms and 2 bathrooms; Second residence has 2 bedrooms and 1.5 bathrooms; converted from a Dunn barn in the 1980s
