Mixed-Use Development Opportunity Near
For Sale
Contact for pricing
238 Palm Ave, Imperial Beach, CA 91932
Shovel-ready mixed-use development with approved plans and permits near the beach.
Property Size13,000 SF
Lot Size0.30 Acres
Price / SF$306.92
Days on Market162
Property Features for 238 Palm Ave
General Information
Standard status
Active
Size
13,000 SF
Total Parking Spaces
18
Lot size
0.30 Acres
Property subtype
Land
Zoning
CM
Building Details
Tenancy
Multi
Listing Agency:
Colwell Realty IB, Inc
(619) 616-6455
Listed By:
Soraya Pizzey · License #CA 01210272
Source:
Crexi
Added: Feb 27
Changed: Aug 8
Last Checked: Jul 14 at 3:25AM
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 Colwell Realty IB, Inc
Investment Insights
Based on property information with market context.
This shovel-ready new development features mixed-use commercial and multi-family units. The sale includes land, approved plans, and permits. The project spans three stories and includes 15 total units: 1 commercial space and 14 residential units, including 5 two-bedroom and 9 one-bedroom apartments. There are 18 dedicated off-site parking spaces. The lot is approximately 13,000 square feet and designed with contemporary architecture. Eco-friendly features include low-maintenance landscaping and solar power. Outdoor spaces include a central courtyard. The property is located on a prominent corner in the vacation rental zone, in a beach community near three bodies of water. It is one block from the beach and offers access to the airport, downtown San Diego, Mexico, and tourist attractions. The location is near four major military bases. Public transportation services run every 7–15 minutes.
Key Highlights
- Shovel‑ready new development with land, approved plans, and permits included for a seamless start.
- Prime location in a highly sought‑after vacation rental zone, one block from the beach.
- Breathtaking ocean, bay, and mountain views from a high‑end contemporary community.
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
$280,753
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
7.04%
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%
$5,615,060
$5.6M
Cap Rate 7%
$4,010,757
$4.0M
Cap Rate 9%
$3,119,478
$3.1M
Market Conditions
NOI Build-Up for 13,000 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
$524.2K $40.32/SF
− Vacancy
−$75.0K −$5.77/SF
EGI
$449.2K $34.55/SF
− OpEx
−$168.5K −$12.96/SF
NOI
$280.8K $21.60/SF
Area
San Diego County, CA
Vacancy
14.30%
Lease Rate
$40.32 /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%
$5,615,060
Cap Rate 7%
$4,010,757
Cap Rate 9%
$3,119,478
Alternative Uses
Best Use
Mixed Use
$4.01M
$3.51M – $4.68M
NOI $280,753 @ 7.0% cap · market cap 7.04%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.96M
$5.21M – $6.95M
NOI $416,932 @ 7.0% cap · market cap 10.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
502
Businesses Nearby
Explore this area
Business Placement
Demographics for 91932, CA
26,013
Population
10,276
Households
2.5
Avg Household Size
35
Median Age
24%
College-Educated
85%
High-School Grad
4.3 sq mi
ZIP Area
6,050
Density / Sq Mi
$79,071
Median Household Income
$41,917
Median Earnings
$1,914
Median Rent
$811,000
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - Shovel-ready mixed-use development with approved plans and permits near the beach.
Where is this commercial land located?
The property is located at 238 Palm Ave Imperial Beach, CA.
What is the asking price?
The asking price for this property is $3,990,000.
What are key features of this property?
This property features: Shovel‑ready new development with land, approved plans, and permits included for a seamless start.; Prime location in a highly sought‑after vacation rental zone, one block from the beach.; Breathtaking ocean, bay, and mountain views from a high‑end contemporary community.
