Versatile Commercial Building on Atwater
For Sale
$849,000
2579 Atwater Boulevard, Atwater, CA 95301
Commercial building with shop area, bay doors, and income potential.
Property Size4,996 SF
Lot Size0.41 Acres
Price / SF$169.94
Days on Market340
Property Features for 2579 Atwater Boulevard
General Information
Standard status
Active
Size
4,996 SF
Lot size
0.41 Acres
Property subtype
Commercial
Listing Agency:
SVN EXECUTIVE COMMERCIAL ADVISORS
(209) 385-8500
Listed By:
RANDY HAYER · License #01251542
Source:
Corcoran
Added: Sep 4, 2025
Changed: Aug 8
Last Checked: Aug 8 at 4:44AM
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 SVN EXECUTIVE COMMERCIAL ADVISORS
Investment Insights
Based on property information with market context.
This commercial building is situated on a 17,781 sq ft lot, offering visibility and accessibility. The property includes a front reception area with a separate entrance, a private office equipped with a kitchenette, laminated flooring, and a half bathroom. The shop area, designed for versatility, features three 14-foot bay doors, 16-foot clear height ceilings, and skylights in two bays, totaling approximately 4,996 sq ft. The property has 10 on-site parking spaces, plus side parking. One bay is currently leased month-to-month at $1,500 per month, providing income potential. A side double gate entrance provides access to the rear yard and an approximately 1,500 sq ft right-side area with separate gas meters. Its location on Atwater Boulevard ensures access to surrounding businesses, freeways, and community services.
Key Highlights
- Prime Commercial Building on a large 17,781 sq. ft. lot with excellent visibility on Atwater Blvd.
- Versatile shop area with three 14‑foot bay doors, 16‑foot clear height ceilings, and skylights (approx. 4,996 sq. ft.).
- Income potential from one bay currently leased at $1,500/month.
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
$59,357
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
6.99%
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%
$1,187,140
$1.2M
Cap Rate 7%
$847,957
$848.0K
Cap Rate 9%
$659,522
$659.5K
Market Conditions
NOI Build-Up for 4,996 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
$95.9K $19.20/SF
− Vacancy
−$4.6K −$0.92/SF
EGI
$91.3K $18.28/SF
− OpEx
−$32.0K −$6.40/SF
NOI
$59.4K $11.88/SF
Area
Merced County, CA
Vacancy
4.80%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
35.00%
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%
$1,187,140
Cap Rate 7%
$847,957
Cap Rate 9%
$659,522
Alternative Uses
Best Use
Flex RnD
$848.0K
$742.0K – $989.3K
NOI $59,357 @ 7.0% cap · market cap 6.99%
Second Best
Industrial
$463.8K
$405.8K – $541.1K
NOI $32,464 @ 7.0% cap · market cap 3.82%
Theoretical Best
Healthcare Medical
$1.10M
$964.5K – $1.29M
NOI $77,158 @ 7.0% cap · market cap 9.09%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
687
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95301, CA
40,886
Population
13,250
Households
3.1
Avg Household Size
35
Median Age
16%
College-Educated
74%
High-School Grad
76.1 sq mi
ZIP Area
537
Density / Sq Mi
$66,669
Median Household Income
$40,101
Median Earnings
$1,215
Median Rent
$367,800
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Commercial building with shop area, bay doors, and income potential.
Where is this flex space located?
The property is located at 2579 Atwater Boulevard Atwater, CA.
What is the asking price?
The asking price for this property is $849,000.
What are key features of this property?
This property features: Prime Commercial Building on a large 17,781 sq. ft. lot with excellent visibility on Atwater Blvd.; Versatile shop area with three 14‑foot bay doors, 16‑foot clear height ceilings, and skylights (approx. 4,996 sq. ft.).; Income potential from one bay currently leased at $1,500/month.
