Retail Center with Gas
For Sale
$6,000,000
2540 Esplanade, Chico, CA 95973
Retail center with gas station and drive-thru restaurant for sale.
Property Size27,298 SF
Lot Size1.96 Acres
Price / SF$219.80
Days on Market153
Property Features for 2540 Esplanade
General Information
Standard status
Active
Size
27,298 SF
Lot size
1.96 Acres
Property subtype
Commercial
Building Details
Building Size
27,298 SF
Year Built
1986
Listing Agency:
Commercial Brokers of California
(530) 828-0011
Listed By:
Michael Donnelly · License #01429436
(530) 828-0011
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 4:53AM
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 Commercial Brokers of California
Investment Insights
Based on property information with market context.
A commercial retail center is available for sale, featuring a gas station and a quick-service restaurant with a national credit tenant. The property benefits from high traffic counts and offers the potential to increase the net return on investment. The offering includes a total of 27,298 square feet of retail and office space situated on 2.79 acres, divided into three parcels. The corner parcel is leased to an Arco AM/PM gas and convenience store operator. Adjacent to it is a Jack in the Box restaurant with a drive-thru. Other tenants include Blue Bird Liquor & Market, Heroes Corner Games & Merchandise, Esplanade Express Laundry, a massage business, and a media model agency. Currently, the center has approximately 30% vacancy, including a 4,988 square foot storefront unit. The offering also includes a back parcel that can be used for additional parking and rental income.
Key Highlights
- Power corner location with high traffic counts
- Includes a gas station (Arco AM/PM) and a quick‑service restaurant (Jack in the Box) with drive‑thru
- Total of 27,298 sq. ft. of retail and office space on 2.79 acres
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
$361,801
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
6.03%
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%
$7,236,020
$7.2M
Cap Rate 7%
$5,168,586
$5.2M
Cap Rate 9%
$4,020,011
$4.0M
Market Conditions
NOI Build-Up for 27,298 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
$511.0K $18.72/SF
− Vacancy
−$28.6K −$1.05/SF
EGI
$482.4K $17.67/SF
− OpEx
−$120.6K −$4.42/SF
NOI
$361.8K $13.25/SF
Area
Chico, CA
Vacancy
5.60%
Lease Rate
$18.72 /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%
$7,236,020
Cap Rate 7%
$5,168,586
Cap Rate 9%
$4,020,011
Alternative Uses
Best Use
Specialty Retail
$5.17M
$4.52M – $6.03M
NOI $361,801 @ 7.0% cap · market cap 6.03%
Second Best
Retail
$4.82M
$4.22M – $5.63M
NOI $337,681 @ 7.0% cap · market cap 5.63%
Theoretical Best
Office A
$5.51M
$4.82M – $6.43M
NOI $385,816 @ 7.0% cap · market cap 6.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
100
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95973, CA
39,609
Population
15,836
Households
2.5
Avg Household Size
39
Median Age
41%
College-Educated
94%
High-School Grad
300.1 sq mi
ZIP Area
132
Density / Sq Mi
$92,228
Median Household Income
$45,897
Median Earnings
$1,546
Median Rent
$484,600
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?
Shopping center - Retail center with gas station and drive-thru restaurant for sale.
Where is this shopping center located?
The property is located at 2540 Esplanade Chico, CA.
What is the asking price?
The asking price for this property is $6,000,000.
What are key features of this property?
This property features: Power corner location with high traffic counts; Includes a gas station (Arco AM/PM) and a quick‑service restaurant (Jack in the Box) with drive‑thru; Total of 27,298 sq. ft. of retail and office space on 2.79 acres
