Eastside Costa Mesa Retail
For Sale
Contact for pricing
2428 Newport Blvd, Costa Mesa, CA 92627
Multi-tenant retail property with value-add potential in Costa Mesa.
Property Size5,625 SF
Lot Size0.45 Acres
Price / SF$461.33
Days on Market196
Property Features for 2428 Newport Blvd
General Information
Standard status
Active
Size
5,625 SF
Lot size
0.45 Acres
Property subtype
Retail
Zoning
C2
Occupancy
46%
Lease Type
Gross
Investment Type
Value Add
Net Operating Income
$38,000
Building Details
Year Built
1961
Buildings
1
Stories
1
Units
8
Tenancy
Multi
Listing Agency:
Colliers - Los Angeles - Orange County, California
(310) 367-7611
Listed By:
Gil Corber · License #CA 01378982
Source:
Crexi
Added: Jan 27
Changed: Aug 8
Last Checked: Aug 8 at 2:56PM
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 Colliers - Los Angeles - Orange County, California
Investment Insights
Based on property information with market context.
This multi-tenant retail property, totaling 5,625 square feet, is located on a 0.45-acre parcel along Newport Boulevard in Eastside Costa Mesa. The property benefits from high visibility and traffic exposure, with access to State Route 55, Interstate 405, and State Route 73. Currently, the property is approximately 46% leased with a mix of short-term and month-to-month tenants, offering flexibility for an owner/user or investor to occupy a portion of the property while maintaining income. Several in-place rents are below market, providing a value-add opportunity through lease-up and rental rate growth. The property includes pylon and building signage, a gated storage yard generating income, and a parking ratio of approximately 6.22 spaces per 1,000 square feet. These attributes support a range of retail and office uses. Located in Eastside Costa Mesa, the property is surrounded by residential neighborhoods and is near Newport Beach, Triangle Square, South Coast Plaza, John Wayne Airport, and the Irvine Business Complex. Limited new retail development in the area supports long-term occupancy and rent growth.
Key Highlights
- Prime Eastside Costa Mesa location with high visibility on Newport Boulevard and easy access to major freeways.
- Value‑add opportunity through lease‑up of vacant space and increasing below‑market rents.
- Owner/user opportunity with flexibility to occupy a portion of the property.
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
$90,522
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
3.49%
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%
$1,810,440
$1.8M
Cap Rate 7%
$1,293,171
$1.3M
Cap Rate 9%
$1,005,800
$1.0M
Market Conditions
NOI Build-Up for 5,625 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
$135.0K $24.00/SF
− Vacancy
−$5.7K −$1.01/SF
EGI
$129.3K $22.99/SF
− OpEx
−$38.8K −$6.90/SF
NOI
$90.5K $16.09/SF
Area
Costa Mesa, CA
Vacancy
4.21%
Lease Rate
$24.00 /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%
$1,810,440
Cap Rate 7%
$1,293,171
Cap Rate 9%
$1,005,800
Alternative Uses
Best Use
Retail
$1.29M
$1.13M – $1.51M
NOI $90,522 @ 7.0% cap · market cap 3.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.91M
$1.67M – $2.22M
NOI $133,358 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,185
Businesses Nearby
Explore this area
Business Placement
Demographics for 92627, CA
61,764
Population
23,286
Households
2.7
Avg Household Size
36
Median Age
42%
College-Educated
85%
High-School Grad
6.4 sq mi
ZIP Area
9,651
Density / Sq Mi
$105,039
Median Household Income
$49,236
Median Earnings
$2,299
Median Rent
$1,074,900
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?
Retail space - Multi-tenant retail property with value-add potential in Costa Mesa.
Where is this retail space located?
The property is located at 2428 Newport Blvd Costa Mesa, CA.
What is the asking price?
The asking price for this property is $2,595,000.
What are key features of this property?
This property features: Prime Eastside Costa Mesa location with **high visibility on Newport Boulevard** and easy access to major freeways.; Value‑add opportunity through lease‑up of vacant space and increasing below‑market rents.; Owner/user opportunity with flexibility to occupy a portion of the property.
