Downtown Hollister Corner Investment
For Sale
$1,000,000
201 5th Street, Hollister, CA 95023
Prime corner property with redevelopment potential in downtown Hollister.
Property Size1,948 SF
Price / SF$513.35
Days on Market244
Property Features for 201 5th Street
General Information
Standard status
Active
Size
1,948 SF
Property subtype
Commercial
Amenities
Central air
Fenced Yard
Assigned Spaces
Central Air Cooling
Clay Roof
Flat/Low Pitch Roof
Guest Parking
Parking Area
Unfinished Flooring
Building Details
Year Built
1935
Listing Agency:
EXP REALTY OF NORTHERN CALIFORNIA, INC.
(888) 832-7179
Listed By:
JULYBEHT ORNELAS
Source:
Corcoran
Added: Dec 21, 2025
Changed: Aug 16
Last Checked: Aug 21 at 7:54AM
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 NORTHERN CALIFORNIA, INC.
Investment Insights
Based on property information with market context.
This corner property in downtown Hollister presents an investment opportunity. The ground floor is leased as a tavern, generating approximately $4,500 per month; however, the building is currently posted as unsafe and not approved for occupancy. The second floor is a work in progress and also posted as unsafe, requiring repairs, inspections, and major renovations. This presents a potential value-add opportunity, subject to buyer verification and satisfaction. The property offers flexibility for commercial use or potential mixed-use redevelopment. The property size is 1948 square feet. Real estate onlybusiness, liquor license, FFE, and goodwill are not included. Use caution during showings; upper-level access is restricted. Buyer to verify all zoning, permits, condition, income, and development potential. Seller and Listing Agent strongly encourage Buyer to conduct all inspections, investigations, and due diligence prior to closing.
Key Highlights
- Prime corner location in downtown Hollister.
- Existing ground floor tenant (tavern) generating approximately $4,500 per month.
- Potential value‑add opportunity through renovation of the second floor.
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
$33,603
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
3.36%
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%
$672,060
$672.1K
Cap Rate 7%
$480,043
$480.0K
Cap Rate 9%
$373,367
$373.4K
Market Conditions
NOI Build-Up for 1,948 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
$58.4K $30.00/SF
− Vacancy
−$4.7K −$2.40/SF
EGI
$53.8K $27.60/SF
− OpEx
−$20.2K −$10.35/SF
NOI
$33.6K $17.25/SF
Area
San Benito County, CA
Vacancy
8.00%
Lease Rate
$30.00 /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%
$672,060
Cap Rate 7%
$480,043
Cap Rate 9%
$373,367
Alternative Uses
Best Use
Mixed Use
$480.0K
$420.0K – $560.1K
NOI $33,603 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.18M
$1.03M – $1.37M
NOI $82,323 @ 7.0% cap · market cap 8.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,284
Businesses Nearby
Explore this area
Business Placement
Demographics for 95023, CA
56,973
Population
18,043
Households
3.2
Avg Household Size
36
Median Age
21%
College-Educated
83%
High-School Grad
394.8 sq mi
ZIP Area
144
Density / Sq Mi
$108,156
Median Household Income
$47,362
Median Earnings
$1,908
Median Rent
$740,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Prime corner property with redevelopment potential in downtown Hollister.
Where is this mixed-use property located?
The property is located at 201 5th Street Hollister, CA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Prime corner location in downtown Hollister.; Existing ground floor tenant (tavern) generating approximately $4,500 per month.; Potential value‑add opportunity through renovation of the second floor.
