Turnkey Restaurant Building with
For Sale
Contact for pricing
1765 Monte Diablo Ave, Stockton, CA 95203
Turnkey restaurant space with recent interior upgrades and an on-site occupied one-bedroom apartment.
Property Size1,992 SF
Price / SF$230.42
Days on Market57
Property Features for 1765 Monte Diablo Ave
General Information
Standard status
Active
Size
1,992 SF
Property subtype
Retail, Mixed Use
Zoning
Neighborhood Commercial (CN)
Investment Type
Value Add
Building Details
Year Renovated
2026
Buildings
1
Stories
1
Listing Agency:
KW Commercial
Listed By:
Bill Johnson · License #CA 01992157
Source:
Crexi
Added: Jun 29
Changed: Aug 14
Last Checked: Aug 24 at 6:48AM
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 KW Commercial
Investment Insights
Based on property information with market context.
1765 Monte Diablo Avenue offers a turnkey restaurant building with substantial recent interior improvements. The restaurant interior has new flooring and fresh interior paint, along with upgraded plumbing and electrical systems. The building also includes improvements intended to accommodate commercial kitchen equipment, supporting faster setup for a food and beverage operation. In addition to the restaurant space, the property has a separate one-bedroom residential apartment that is currently occupied.
The property is located along Monte Diablo Avenue and provides convenient access to Interstate 5, Highway 99, and Highway 4, supporting easy connectivity for guests, staff, deliveries, and vendors.
This configuration can work well for an owner-user seeking a prepared restaurant shell with upgraded building systems, or for an investor looking to reposition the commercial space while retaining residential rental income from the occupied apartment. The combination of restaurant-ready improvements and an on-site residence may help reduce reliance on external income sources during a transition to a new concept or operator.
The property is located along Monte Diablo Avenue and provides convenient access to Interstate 5, Highway 99, and Highway 4, supporting easy connectivity for guests, staff, deliveries, and vendors.
This configuration can work well for an owner-user seeking a prepared restaurant shell with upgraded building systems, or for an investor looking to reposition the commercial space while retaining residential rental income from the occupied apartment. The combination of restaurant-ready improvements and an on-site residence may help reduce reliance on external income sources during a transition to a new concept or operator.
Key Highlights
- Turnkey restaurant building with recent interior upgrades, including new flooring and fresh interior paint.
- Plumbing and electrical systems have been substantially upgraded as part of the recent interior renovations.
- Existing restaurant build‑out includes improvements designed to accommodate commercial kitchen equipment.
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
$25,628
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
5.58%
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%
$512,560
$512.6K
Cap Rate 7%
$366,114
$366.1K
Cap Rate 9%
$284,756
$284.8K
Market Conditions
NOI Build-Up for 1,992 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
$35.9K $18.00/SF
− Vacancy
−$1.7K −$0.85/SF
EGI
$34.2K $17.15/SF
− OpEx
−$8.5K −$4.29/SF
NOI
$25.6K $12.87/SF
Area
Stockton, CA
Vacancy
4.70%
Lease Rate
$18.00 /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%
$512,560
Cap Rate 7%
$366,114
Cap Rate 9%
$284,756
Alternative Uses
Best Use
Specialty Retail
$366.1K
$320.4K – $427.1K
NOI $25,628 @ 7.0% cap · market cap 5.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$538.7K
$471.4K – $628.5K
NOI $37,708 @ 7.0% cap · market cap 8.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
386
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95203, CA
18,064
Population
5,858
Households
3.1
Avg Household Size
34
Median Age
17%
College-Educated
69%
High-School Grad
6.2 sq mi
ZIP Area
2,914
Density / Sq Mi
$64,710
Median Household Income
$32,927
Median Earnings
$1,248
Median Rent
$349,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Turnkey restaurant space with recent interior upgrades and an on-site occupied one-bedroom apartment.
Where is this conventional restaurant located?
The property is located at 1765 Monte Diablo Ave Stockton, CA.
What is the asking price?
The asking price for this property is $459,000.
What are key features of this property?
This property features: Turnkey restaurant building with recent interior upgrades, including new flooring and fresh interior paint.; Plumbing and electrical systems have been substantially upgraded as part of the recent interior renovations.; Existing restaurant build‑out includes improvements designed to accommodate commercial kitchen equipment.
