Divisible Flex Industrial
For Sale
Contact for pricing
224 E.Highway 246, Buellton, CA 93427
Industrial flex building divisible into four separately metered units with rooftop solar and 20-foot ceilings.
Property Size9,000 SF
Price / SF$438.89
Days on Market223
Property Features for 224 E.Highway 246
General Information
Standard status
Active
Size
9,000 SF
Class
B
Property subtype
Office, Industrial
Lease Type
Net
Listing Agency:
The Herman Company
Listed By:
Paul Herman · License #CA01398183
Source:
Crexi
Added: Jan 24
Changed: Sep 4
Last Checked: Aug 31 at 3:29PM
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 The Herman Company
Investment Insights
Based on property information with market context.
This flex industrial property features heavy power infrastructure, a rooftop solar system, and 20-foot ceilings. The building is divisible into four separately metered units and includes 21 private offices, conference rooms, and climate-controlled amenities throughout.
Located near the 101 and 246 highway interchange, the property is positioned with access to the Santa Barbara Wine Country gateway and is described as benefiting from approximately 24,000 cars per day traffic.
The current improvements occupy only 15% of the lot, leaving room for additional storage and parking consistent with the property’s stated flexibility. The offering is presented as suitable for owner-users and investors seeking warehouses and office capacity, as well as for potential repositioning toward medical, industrial, or multi-family use.
Located near the 101 and 246 highway interchange, the property is positioned with access to the Santa Barbara Wine Country gateway and is described as benefiting from approximately 24,000 cars per day traffic.
The current improvements occupy only 15% of the lot, leaving room for additional storage and parking consistent with the property’s stated flexibility. The offering is presented as suitable for owner-users and investors seeking warehouses and office capacity, as well as for potential repositioning toward medical, industrial, or multi-family use.
Key Highlights
- Industrial flex building divisible into four separately metered units
- Rooftop solar system and heavy power infrastructure
- 20‑foot ceilings throughout the building
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
$160,558
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
4.06%
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%
$3,211,160
$3.2M
Cap Rate 7%
$2,293,686
$2.3M
Cap Rate 9%
$1,783,978
$1.8M
Market Conditions
NOI Build-Up for 9,000 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
$237.6K $26.40/SF
− Vacancy
−$23.5K −$2.61/SF
EGI
$214.1K $23.79/SF
− OpEx
−$53.5K −$5.95/SF
NOI
$160.6K $17.84/SF
Area
Santa Barbara County, CA
Vacancy
9.90%
Lease Rate
$26.40 /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%
$3,211,160
Cap Rate 7%
$2,293,686
Cap Rate 9%
$1,783,978
Alternative Uses
Best Use
Office B
$2.29M
$2.01M – $2.68M
NOI $160,558 @ 7.0% cap · market cap 4.06%
Second Best
Flex RnD
$1.65M
$1.44M – $1.92M
NOI $115,402 @ 7.0% cap · market cap 2.92%
Theoretical Best
Multifamily LT 5
$2.82M
$2.47M – $3.30M
NOI $197,731 @ 7.0% cap · market cap 5.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
610
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 93427, CA
5,864
Population
2,712
Households
2.2
Avg Household Size
43
Median Age
42%
College-Educated
94%
High-School Grad
69.5 sq mi
ZIP Area
84
Density / Sq Mi
$106,442
Median Household Income
$58,298
Median Earnings
$2,088
Median Rent
$762,500
Median Home Value
Market
Vacancy Rate% for Office in West region
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Similar Off Market Nearby
- Coastal Cuisine Catering Co — 330 W Hwy 246 SPC 164, Buellton, CA 93427
- New West Catering Co — 181 Industrial Way Ste B, Buellton, CA 93427
- High On The Hog Catering Inc. — 100 Los Padres Way #2, Buellton, CA 93427
Frequently Asked Questions
What type of property is this?
Flex space - Industrial flex building divisible into four separately metered units with rooftop solar and 20-foot ceilings.
Where is this flex space located?
The property is located at 224 E.Highway 246 Buellton, CA.
What is the asking price?
The asking price for this property is $3,950,000.
What are key features of this property?
This property features: Industrial flex building divisible into four separately metered units; Rooftop solar system and heavy power infrastructure; 20‑foot ceilings throughout the building
