Mixed-Use Property with
For Sale
$1,298,000
231 Lux Avenue, South San Francisco, CA 94080
Mixed-use property with a long-standing restaurant and residential unit.
Property Size1,584 SF
Price / SF$819.44
Days on Market441
Property Features for 231 Lux Avenue
General Information
Standard status
Active
Size
1,584 SF
Building Details
Year Built
1915
Listing Agency:
KINETIC REAL ESTATE
Listed By:
GIOVANI FRANCO · License #01947016
(650) 296-3880
Source:
Corcoran
Added: Jun 19, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 KINETIC REAL ESTATE
Investment Insights
Based on property information with market context.
Located in South San Francisco, this mixed-use property at 231 Lux Avenue presents an opportunity for investors and owner-users. The two-story building includes a 3-bedroom, 1-bathroom residential unit on the upper level, which is currently rented. The street-level commercial space houses a Mexican restaurant, included in the sale. The restaurant has been in operation for nearly 40 years. The sale includes a beer and wine license (subject to conditions) and exclusive basement access for restaurant operations. The property sits on a large lot with dual street access, including entry from Tamarack Lane. The rear yard has been improved for outdoor dining or private events, with seating for approximately 40+ guests. The property is located near Grand Avenue and Oyster Point, providing exposure and proximity to biotech campuses.
Key Highlights
- Mixed‑use property featuring a residential unit and a well‑known Mexican restaurant.
- Turnkey restaurant business boasting nearly 40 years of success - ready for a new owner.
- Beer and wine license included (subject to conditions).
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
$51,169
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
3.94%
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%
$1,023,380
$1.0M
Cap Rate 7%
$730,986
$731.0K
Cap Rate 9%
$568,544
$568.5K
Market Conditions
NOI Build-Up for 1,584 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
$108.7K $68.64/SF
− Vacancy
−$26.9K −$16.95/SF
EGI
$81.9K $51.69/SF
− OpEx
−$30.7K −$19.38/SF
NOI
$51.2K $32.30/SF
Area
San Mateo County, CA
Vacancy
24.70%
Lease Rate
$68.64 /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%
$1,023,380
Cap Rate 7%
$730,986
Cap Rate 9%
$568,544
Alternative Uses
Best Use
Mixed Use
$731.0K
$639.6K – $852.8K
NOI $51,169 @ 7.0% cap · market cap 3.94%
Second Best
Apartment 5plus
$615.9K
$538.9K – $718.5K
NOI $43,112 @ 7.0% cap · market cap 3.32%
Theoretical Best
Warehouse
$1.26M
$1.10M – $1.47M
NOI $88,073 @ 7.0% cap · market cap 6.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,220
Businesses Nearby
275k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 36%
Dining 27%
Shops & Services 24%
Hotels & Casinos 12%
Costco Wholesale
Superstores
100,466 visits/mo
0.5 miles
Denny's
Dining
18,873 visits/mo
0.4 miles
Dunkin' Donuts
Dining
17,174 visits/mo
0.5 miles
Speedway
Shops & Services
14,815 visits/mo
0.4 miles
Wells Fargo
Shops & Services
13,793 visits/mo
0.1 miles
Demographics for 94080, CA
66,592
Population
23,364
Households
2.9
Avg Household Size
40
Median Age
40%
College-Educated
86%
High-School Grad
10.2 sq mi
ZIP Area
6,529
Density / Sq Mi
$135,966
Median Household Income
$61,138
Median Earnings
$2,840
Median Rent
$1,159,500
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 - Mixed-use property with a long-standing restaurant and residential unit.
Where is this mixed-use property located?
The property is located at 231 Lux Avenue South San Francisco, CA.
What is the asking price?
The asking price for this property is $1,298,000.
What are key features of this property?
This property features: Mixed‑use property featuring a residential unit and a well‑known Mexican restaurant.; Turnkey restaurant business boasting nearly 40 years of success - ready for a new owner.; Beer and wine license included (subject to conditions).
