Historic Multi-Use Retail
For Sale
$405,000
Pending
21456 State Hwy 175, Middletown, CA 95461
Built in 1925, this flexible retail building offers options to operate or lease an existing art gallery tenant.
Property Size2,000 SF
Days on Market399
Property Features for 21456 State Hwy 175
General Information
Standard status
Pending
Size
2,000 SF
Zoning
C2-DR-P-SC
Net Operating Income
$17,800
Taxes and HOA fees
Annual Taxes
$7,124
Amenities
Ductless
Building Details
Building Size
2,000 SF
Year Built
1925
Buildings
1
Stories
1
Listing Agency:
NorthBay Property Management
Listed By:
Dolores Parker · License #01922597
(707) 249-1650
Source:
Evrealestate
Added: Aug 22, 2025
Changed: Sep 23
Last Checked: Sep 22 at 1:19PM
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 NorthBay Property Management
Investment Insights
Based on property information with market context.
This multi-use opportunity retail building was built in 1925 and offers a flexible format for an owner-operator or investor. The property can be adapted to create and shape your own business, or it can be held with the current art gallery tenant in place, depending on your strategy.
Located in the heart of Middletown, the building sits at the intersection of Hwy 29 and Hwy 175, providing full traffic exposure. For businesses that benefit from visibility, this crossroads setting supports straightforward customer awareness and consistent drive-by presence.
For buyers looking for a retail asset with versatility, the combination of an older, character-rich structure and an already-established tenant provides multiple paths to use. Owner-operators can evaluate how the existing space can work for their concept, while investors can review the value of maintaining the current art gallery tenant. Either way, the property is presented as a tour-ready opportunity for serious buyers and brokers who want to see firsthand how the building can fit its next use.
Located in the heart of Middletown, the building sits at the intersection of Hwy 29 and Hwy 175, providing full traffic exposure. For businesses that benefit from visibility, this crossroads setting supports straightforward customer awareness and consistent drive-by presence.
For buyers looking for a retail asset with versatility, the combination of an older, character-rich structure and an already-established tenant provides multiple paths to use. Owner-operators can evaluate how the existing space can work for their concept, while investors can review the value of maintaining the current art gallery tenant. Either way, the property is presented as a tour-ready opportunity for serious buyers and brokers who want to see firsthand how the building can fit its next use.
Key Highlights
- Built in 1925, this flexible retail building offers multiple use options
- Options to operate your business or lease an existing art gallery tenant
- Located at the intersection of Hwy 29 and Hwy 175 for full traffic exposure
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
$24,785
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
6.12%
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%
$495,700
$495.7K
Cap Rate 7%
$354,071
$354.1K
Cap Rate 9%
$275,389
$275.4K
Market Conditions
NOI Build-Up for 2,000 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
$37.0K $18.48/SF
− Vacancy
−$1.6K −$0.78/SF
EGI
$35.4K $17.70/SF
− OpEx
−$10.6K −$5.31/SF
NOI
$24.8K $12.39/SF
Area
Lake County, CA
Vacancy
4.20%
Lease Rate
$18.48 /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%
$495,700
Cap Rate 7%
$354,071
Cap Rate 9%
$275,389
Alternative Uses
Best Use
Retail
$354.1K
$309.8K – $413.1K
NOI $24,785 @ 7.0% cap · market cap 6.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$802.7K
$702.4K – $936.5K
NOI $56,190 @ 7.0% cap · market cap 13.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
307
Businesses Nearby
Explore this area
Business Placement
Demographics for 95461, CA
2,689
Population
1,646
Households
1.6
Avg Household Size
48
Median Age
24%
College-Educated
84%
High-School Grad
123.3 sq mi
ZIP Area
22
Density / Sq Mi
$81,830
Median Household Income
$40,308
Median Earnings
$2,192
Median Rent
$385,000
Median Home Value
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Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Retail space - Built in 1925, this flexible retail building offers options to operate or lease an existing art gallery tenant.
Where is this retail space located?
The property is located at 21456 State Hwy 175 Middletown, CA.
What is the asking price?
The asking price for this property is $405,000.
What are key features of this property?
This property features: Built in 1925, this flexible retail building offers multiple use options; Options to operate your business or lease an existing art gallery tenant; Located at the intersection of Hwy 29 and Hwy 175 for full traffic exposure
