Mixed-Use Commercial Property For
16795 Monterey Road, Morgan Hill, CA 95037
Mixed-use property with established tenants and value-add potential.
Property size:
6,450 SFPrice / SF:
$410/SF- Added:
- Jun 19, 2025
- Days on Market:
- 338
- Last Refresh:
- Mar 16 at 9:09 am
Property Features for 16795 Monterey Road
General Information
- Standard status
- Active
- Size
- 6,450 SF
Building Details
- Year Built
- 1990
Listing agent ADAM DAHDOUH
Listing office YELLOWSTONE INVESTMENTS
Listing date Jun 19, 2025
Source Corcoran
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 YELLOWSTONE INVESTMENTS
HighLights
- 100% Occupied by three established tenants.
- ±6,450‑square‑foot mixed‑use commercial property on a ±25,758‑square‑foot lot.
- Located in a dynamic South Bay submarket.
- All leases include 3% annual rent increases.
- Over $450,000 in recent capital improvements.
- Value‑add opportunity to convert all leases to NNN.
Overview
This mixed-use commercial property, built in 1990, offers approximately 6,450 square feet of space on a lot of approximately 25,758 square feet. The property is located on Monterey Rd in Morgan Hill, CA. The building is currently 100% occupied by three established tenants. Each unit includes a private bathroom. Leases include 3% annual rent increases. Crystal Nails Boutique and September Day Spa have options to extend their leases. The property operates with a mix of NNN and gross leases, presenting a value-add opportunity to convert all leases to NNN. The property is serviced by two separate water meters, one for interior use and one for landscaping. The building has undergone over $450,000 in recent capital improvements, and each tenant has also invested significantly in their respective spaces.
Financial Insights
Value Estimation Calculated for Retail
Conservative
$1.94M
NOI $174,224 @ 9.00% cap · cautious / downside scenario
Moderate
$2.49M
NOI $174,224 @ 7.00% cap · market / base-case scenario
Aggressive
$3.48M
NOI $174,224 @ 5.00% cap · optimistic / upside scenario
NOI & Cap Rate Calculator
NOI Build-Up
- 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.
Calculated for Retail
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $260.8k | $40.44 |
| − Vacancy | −$11.9k | −$1.85 |
| EGI | $248.9k | $38.59 |
| − OpEx | −$74.7k | −$11.58 |
| NOI | $174.2k | $27.01 |
6,450 SF · lease $40.44/SF/yr · vacancy 4.58% · expense 30.00%
Alternative Use Scenarios
Best Use
Retail
$2.49M
$2.18M – $2.90M
NOI $174,224 @ 7.0% cap · market cap 6.57%
Second Best
Mixed Use
$1.59M
$1.39M – $1.85M
NOI $111,263 @ 7.0% cap · market cap 4.20%
Theoretical Best
Office A
$3.89M
$3.41M – $4.54M
NOI $272,577 @ 7.0% cap · market cap 10.29%
Zoning and permitted uses should be independently verified with local authorities.
Property Profile
Location Intelligence
Current Use by Public Records
Elite Barber College
Vocational School
Crystal Nails Boutique
Nail Salon
September Day Spa
Alternative Medicine Practice
Location Insight
- Map
- Local Demand
- City
- Morgan Hill
- County
- Santa Clara
- State
- California
- Longitude
- -121.649
- Latitude
- 37.1221
Nearby Similar for Sale
FAQs
What type of property is this?
Mixed-use property - Mixed-use property with established tenants and value-add potential.
Where is this mixed-use property located?
The property is located at 16795 Monterey Road Morgan Hill, CA.
What is the asking price?
The asking price for this property is $2,650,000.
What are key features of this property?
This property features: 100% Occupied by three established tenants.; ±6,450‑square‑foot mixed‑use commercial property on a ±25,758‑square‑foot lot.; Located in a dynamic South Bay submarket.
