Four-Unit Mixed-Use
For Sale
Contact for pricing
2240 N Fremont St, Monterey, CA 93940
Three-building commercial property with established tenancy, owner-occupancy potential, and PC-NF Mixed Use zoning.
Property Size7,120 SF
Price / SF$272.47
Days on Market503
Property Features for 2240 N Fremont St
General Information
Standard status
Active
Size
7,120 SF
Property subtype
Mixed Use, Retail
Zoning
PC-NF Mixed Use
Building Details
Year Built
1956
Buildings
3
Units
4
Tenancy
Multi
Listing Agency:
Mahoney & Associates
(831) 646-1919
Listed By:
David Baird · License #02282077
Source:
Crexi
Added: Apr 16, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:34PM
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 Mahoney & Associates
Investment Insights
Based on property information with market context.
This mixed-use property comprises three buildings totaling approximately 7,120 SF and was constructed in 1956. The four-unit configuration includes three units with long-standing leases, while the remaining unit offers an owner-occupancy option. PC-NF Mixed Use zoning applies to the property.
The site includes approximately 120 feet of frontage along North Fremont Street in Monterey. An alley borders the rear of the buildings, providing additional site access and flexibility. The property is positioned near Highway 1, Highway 68, and Highway 218, also identified as Canyon del Rey Boulevard.
The North Fremont Specific Plan encompasses the property and includes long-term mixed-use redevelopment planning. The combination of multiple buildings, existing leases, frontage, rear alley access, and a partially owner-occupied configuration supports a range of commercial ownership strategies.
The site includes approximately 120 feet of frontage along North Fremont Street in Monterey. An alley borders the rear of the buildings, providing additional site access and flexibility. The property is positioned near Highway 1, Highway 68, and Highway 218, also identified as Canyon del Rey Boulevard.
The North Fremont Specific Plan encompasses the property and includes long-term mixed-use redevelopment planning. The combination of multiple buildings, existing leases, frontage, rear alley access, and a partially owner-occupied configuration supports a range of commercial ownership strategies.
Key Highlights
- Three buildings totaling approximately 7,120 SF
- Four‑unit configuration with three long‑standing leases
- Fourth unit offers an owner‑occupied opportunity
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
$103,133
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
5.32%
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%
$2,062,660
$2.1M
Cap Rate 7%
$1,473,329
$1.5M
Cap Rate 9%
$1,145,922
$1.1M
Market Conditions
NOI Build-Up for 7,120 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
$153.8K $21.60/SF
− Vacancy
−$6.5K −$0.91/SF
EGI
$147.3K $20.69/SF
− OpEx
−$44.2K −$6.21/SF
NOI
$103.1K $14.48/SF
Area
Monterey County, CA
Vacancy
4.20%
Lease Rate
$21.60 /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%
$2,062,660
Cap Rate 7%
$1,473,329
Cap Rate 9%
$1,145,922
Alternative Uses
Best Use
Retail
$1.47M
$1.29M – $1.72M
NOI $103,133 @ 7.0% cap · market cap 5.32%
Second Best
Mixed Use
$1.40M
$1.23M – $1.64M
NOI $98,256 @ 7.0% cap · market cap 5.06%
Theoretical Best
Specialty Retail
$2.72M
$2.38M – $3.17M
NOI $190,305 @ 7.0% cap · market cap 9.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
911
Businesses Nearby
156k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 38%
Shops & Services 31%
Dining 22%
Apparel 5%
Safeway
Groceries
60,028 visits/mo
0.3 miles
Dollar Tree
Shops & Services
21,482 visits/mo
0.1 miles
Burger King
Dining
14,000 visits/mo
0.4 miles
Chevron
Shops & Services
10,902 visits/mo
0.2 miles
Black Bear Diner
Dining
10,665 visits/mo
0.3 miles
Demographics for 93940, CA
30,454
Population
15,451
Households
2
Avg Household Size
43
Median Age
54%
College-Educated
94%
High-School Grad
35.1 sq mi
ZIP Area
868
Density / Sq Mi
$110,669
Median Household Income
$62,711
Median Earnings
$2,305
Median Rent
$1,039,700
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?
Mixed-use property - Three-building commercial property with established tenancy, owner-occupancy potential, and PC-NF Mixed Use zoning.
Where is this mixed-use property located?
The property is located at 2240 N Fremont St Monterey, CA.
What is the asking price?
The asking price for this property is $1,940,000.
What are key features of this property?
This property features: Three buildings totaling approximately 7,120 SF; Four‑unit configuration with three long‑standing leases; Fourth unit offers an owner‑occupied opportunity
