Freestanding Retail Building with
For Sale
$1,725,000
1987 Hilltop Drive, Redding, CA 96002
Freestanding retail building includes restaurant-style plumbing and restrooms, plus a 45-foot pylon sign and parking for conversion flexibility.
Property Size8,287 SF
Price / SF$208.16
Days on Market139
Property Features for 1987 Hilltop Drive
General Information
Standard status
Active
Size
8,287 SF
Total Parking Spaces
100
Property subtype
Commercial
Zoning
RED GC - General Commercial
Site & Location
Traffic Count
19,602 vehicles/day
Highway Access
Yes
Building Details
Year Built
1988
Listing Agency:
Cox Real Estate Consultants Inc.
(530) 643-7342
Listed By:
Grenvik Group Real Estate · License #01941996
(530) 643-7342
Source:
Grenvikgroup.idxbroker
Added: Apr 8
Changed: Aug 23
Last Checked: Aug 22 at 3:47AM
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 Cox Real Estate Consultants Inc.
Investment Insights
Based on property information with market context.
An 8,287 SF freestanding retail building offers conversion flexibility for specialty use office or medical space. The former restaurant configuration leaves extra plumbing, a sufficient electrical infrastructure, and multi-stall restrooms in place. The building also features a prominent 45-foot pylon sign, supporting strong on-site visibility.
Located in the heart of Redding, CA, the property is positioned near the I-5 and Highway 44 interchange for convenient access. The site is described as suitable for retail uses and includes approximately 100 parking spaces.
The offering also notes redevelopment flexibility, including the ability to split into multiple spaces or redevelop the pad into an alternative use, along with a stated 3,600 SF potential for additional kiosk or building pad development. The listing further mentions potential for seller financing for qualified buyers.
Located in the heart of Redding, CA, the property is positioned near the I-5 and Highway 44 interchange for convenient access. The site is described as suitable for retail uses and includes approximately 100 parking spaces.
The offering also notes redevelopment flexibility, including the ability to split into multiple spaces or redevelop the pad into an alternative use, along with a stated 3,600 SF potential for additional kiosk or building pad development. The listing further mentions potential for seller financing for qualified buyers.
Key Highlights
- Freestanding 8,287 SF retail building built in 1988, formerly used as a restaurant
- Restaurant‑style plumbing and multi‑stall restrooms; can be converted to medical or office use
- 45' high pylon sign and approximately 19,602 ADT for high visibility
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
$108,736
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
6.30%
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%
$2,174,720
$2.2M
Cap Rate 7%
$1,553,371
$1.6M
Cap Rate 9%
$1,208,178
$1.2M
Market Conditions
NOI Build-Up for 8,287 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
$165.1K $19.92/SF
− Vacancy
−$9.7K −$1.18/SF
EGI
$155.3K $18.74/SF
− OpEx
−$46.6K −$5.62/SF
NOI
$108.7K $13.12/SF
Area
Shasta County, CA
Vacancy
5.90%
Lease Rate
$19.92 /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%
$2,174,720
Cap Rate 7%
$1,553,371
Cap Rate 9%
$1,208,178
Alternative Uses
Best Use
Retail
$1.55M
$1.36M – $1.81M
NOI $108,736 @ 7.0% cap · market cap 6.30%
Second Best
Office B
$1.43M
$1.25M – $1.66M
NOI $99,785 @ 7.0% cap · market cap 5.78%
Theoretical Best
Specialty Retail
$1.84M
$1.61M – $2.15M
NOI $129,148 @ 7.0% cap · market cap 7.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
19,602 VPD
Traffic count
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,606
Businesses Nearby
Explore this area
Business Placement
Demographics for 96002, CA
35,158
Population
13,685
Households
2.6
Avg Household Size
39
Median Age
22%
College-Educated
93%
High-School Grad
30.6 sq mi
ZIP Area
1,149
Density / Sq Mi
$74,230
Median Household Income
$40,454
Median Earnings
$1,281
Median Rent
$347,500
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?
Retail space - Freestanding retail building includes restaurant-style plumbing and restrooms, plus a 45-foot pylon sign and parking for conversion flexibility.
Where is this retail space located?
The property is located at 1987 Hilltop Drive Redding, CA.
What is the asking price?
The asking price for this property is $1,725,000.
What are key features of this property?
This property features: Freestanding 8,287 SF retail building built in 1988, formerly used as a restaurant; Restaurant‑style plumbing and multi‑stall restrooms; can be converted to medical or office use; 45' high pylon sign and approximately 19,602 ADT for high visibility
