Morro Bay Hospitality
For Sale
Contact for pricing
2460 Main St, Morro Bay, CA 93442
29-room hospitality property on 1.3 acres in Morro Bay.
Property Size10,586 SF
Lot Size1.30 Acres
Price / SF$651.80
Days on Market156
Property Features for 2460 Main St
General Information
Standard status
Active
Size
10,586 SF
Lot size
1.30 Acres
Property subtype
Hospitality
Zoning
Commercial
Building Details
Year Built
1953
Year Renovated
2025
Buildings
4
Listing Agency:
EverlyGrove Hotel Brokers
(805) 544-5500
Listed By:
Aaron Graves · License #01787901
Source:
Crexi
Added: Mar 9
Changed: Aug 8
Last Checked: Aug 8 at 11:40AM
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 EverlyGrove Hotel Brokers
Investment Insights
Based on property information with market context.
The Morro Bay Recovery Center is a 29-room hospitality property situated on approximately 1.3 acres in Morro Bay, California. Located along Main Street with convenient access to Highway 1, the property is positioned just minutes from the harbor, beaches, and the Embarcadero district. Originally built in 1953 and thoughtfully renovated, the asset spans four buildings and offers a well-maintained layout with on-site parking and additional operational components. The property has a size of 10586 square feet. The expansive site, strong visibility, and established infrastructure create flexibility for a variety of hospitality or specialty lodging concepts.
Key Highlights
- 29‑room hospitality property on ±1.3 acres in Morro Bay, California.
- Convenient access to Highway 1 and minutes from the harbor, beaches, and Embarcadero district.
- Strong visibility along Main Street.
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
$291,432
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
4.22%
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%
$5,828,640
$5.8M
Cap Rate 7%
$4,163,314
$4.2M
Cap Rate 9%
$3,238,133
$3.2M
Market Conditions
NOI Build-Up for 10,586 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
$501.8K $47.40/SF
− Vacancy
−$16.1K −$1.52/SF
EGI
$485.7K $45.88/SF
− OpEx
−$194.3K −$18.35/SF
NOI
$291.4K $27.53/SF
Area
San Luis Obispo County, CA
Vacancy
3.20%
Lease Rate
$47.40 /SF/Yr
Expense Ratio
40.00%
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%
$5,828,640
Cap Rate 7%
$4,163,314
Cap Rate 9%
$3,238,133
Alternative Uses
Best Use
Healthcare Medical
$4.16M
$3.64M – $4.86M
NOI $291,432 @ 7.0% cap · market cap 4.22%
Second Best
—
—
no second resolved use
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
211
Businesses Nearby
Explore this area
Business Placement
Demographics for 93442, CA
11,390
Population
6,537
Households
1.7
Avg Household Size
54
Median Age
45%
College-Educated
93%
High-School Grad
44.5 sq mi
ZIP Area
256
Density / Sq Mi
$92,163
Median Household Income
$50,651
Median Earnings
$1,815
Median Rent
$870,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Rehabilitation center - 29-room hospitality property on 1.3 acres in Morro Bay.
Where is this rehabilitation center located?
The property is located at 2460 Main St Morro Bay, CA.
What is the asking price?
The asking price for this property is $6,900,000.
What are key features of this property?
This property features: 29‑room hospitality property on ±1.3 acres in Morro Bay, California.; Convenient access to Highway 1 and minutes from the harbor, beaches, and Embarcadero district.; Strong visibility along Main Street.
