Freestanding Restaurant on
For Sale
$1,500,000
2505 Scaroni Avenue, Calexico, CA 92231
Vacant, freestanding restaurant building on 1.14-acre lot with 109 parking spaces and highway frontage in a CH zone.
Property Size5,400 SF
Lot Size1.14 Acres
Price / SF$277.78
Days on Market74
Property Features for 2505 Scaroni Avenue
General Information
Standard status
Active
Size
5,400 SF
Total Parking Spaces
109
Lot size
1.14 Acres
Property subtype
Restaurant
Zoning
CH
Lease Type
NNN
Site & Location
Traffic Count
37,041 vehicles/day
Highway Access
Yes
Road Access
Yes
Amenities
Ideal Owner/User or value add investor opportunity
Zoned CH Commercial Highway — Accommodates Multiple Conforming Uses
Prime SR-111 Corridor with reported ±37,000 VPD
Cross-Border Trade Area | Adjacent to Mexicali (1.2M+ Residents; ~30,000 daily border crossings)
Building Details
Building Size
5,400 SF
Year Built
2003
Listing Agency:
Marcus & Millichap - Palo Alto
Listed By:
Steve Sauter · License #License(s): CA: 01084092
(650) 391-1803
Source:
Marcusmillichap
Added: Jun 23
Changed: Aug 24
Last Checked: Sep 4 at 2:00AM
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 Marcus & Millichap - Palo Alto
Investment Insights
Based on property information with market context.
The subject property is a ±15,400-square-foot freestanding restaurant building on a ±1.14-acre parcel. Built in 2003, it has operated as an Applebee’s Neighborhood Grill & Bar since that time and will be delivered vacant and restaurant-ready. The site includes 109 on-site parking spaces.
The property fronts State Route 111 (Imperial Avenue), Calexico’s heavily trafficked commercial artery, with approximately 37,041 vehicles per day. It is adjacent to a Hampton Inn & Suites and is near national retailers including Walmart, Pizza Hut, T-Mobile, Denny’s, and McDonald’s. The site also benefits from cross-border activity, with the Calexico-Mexicali port of entry facilitating approximately 30,000 daily vehicle crossings.
Zoned Commercial Highway (CH), the designation accommodates multiple conforming uses including full-service and fast-food restaurants, hotels and motels, shopping centers, supermarkets and pharmacies, medical and health service offices, banks and financial institutions, and athletic/health clubs.
The property fronts State Route 111 (Imperial Avenue), Calexico’s heavily trafficked commercial artery, with approximately 37,041 vehicles per day. It is adjacent to a Hampton Inn & Suites and is near national retailers including Walmart, Pizza Hut, T-Mobile, Denny’s, and McDonald’s. The site also benefits from cross-border activity, with the Calexico-Mexicali port of entry facilitating approximately 30,000 daily vehicle crossings.
Zoned Commercial Highway (CH), the designation accommodates multiple conforming uses including full-service and fast-food restaurants, hotels and motels, shopping centers, supermarkets and pharmacies, medical and health service offices, banks and financial institutions, and athletic/health clubs.
Key Highlights
- Freestanding 5,400 SF restaurant building built in 2003 and delivered vacant for an investor or owner‑user
- 1.14‑acre parcel with frontage on State Route 111 (Imperial Avenue), averaging about 37,041 vehicles per day
- 109 on‑site parking spaces (about 20 spaces per 1,000 SF) supporting on‑site customer access
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
$70,428
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
4.70%
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%
$1,408,560
$1.4M
Cap Rate 7%
$1,006,114
$1.0M
Cap Rate 9%
$782,533
$782.5K
Market Conditions
NOI Build-Up for 5,400 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
$99.8K $18.48/SF
− Vacancy
−$5.9K −$1.09/SF
EGI
$93.9K $17.39/SF
− OpEx
−$23.5K −$4.35/SF
NOI
$70.4K $13.04/SF
Area
Imperial County, CA
Vacancy
5.90%
Lease Rate
$18.48 /SF/Yr
Expense Ratio
25.00%
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%
$1,408,560
Cap Rate 7%
$1,006,114
Cap Rate 9%
$782,533
Alternative Uses
Best Use
Specialty Retail
$1.01M
$880.4K – $1.17M
NOI $70,428 @ 7.0% cap · market cap 4.70%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.38M
$1.21M – $1.61M
NOI $96,422 @ 7.0% cap · market cap 6.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
37,041 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
458
Businesses Nearby
255k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Superstores 31%
Dining 29%
Groceries 19%
Shops & Services 12%
Walmart
Superstores
80,319 visits/mo
0.3 miles
Cardenas Market
Groceries
35,198 visits/mo
0.5 miles
Dollar Tree
Shops & Services
22,228 visits/mo
0.4 miles
Jack in the Box
Dining
20,713 visits/mo
0.4 miles
Denny's
Dining
13,470 visits/mo
0.2 miles
Demographics for 92231, CA
39,542
Population
11,799
Households
3.4
Avg Household Size
36
Median Age
21%
College-Educated
65%
High-School Grad
68.6 sq mi
ZIP Area
576
Density / Sq Mi
$50,114
Median Household Income
$26,738
Median Earnings
$1,049
Median Rent
$281,600
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?
Conventional restaurant - Vacant, freestanding restaurant building on 1.14-acre lot with 109 parking spaces and highway frontage in a CH zone.
Where is this conventional restaurant located?
The property is located at 2505 Scaroni Avenue Calexico, CA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Freestanding 5,400 SF restaurant building built in 2003 and delivered vacant for an investor or owner‑user; 1.14‑acre parcel with frontage on State Route 111 (Imperial Avenue), averaging about 37,041 vehicles per day; 109 on‑site parking spaces (about 20 spaces per 1,000 SF) supporting on‑site customer access
