Merced Industrial Buildings with Solar
For Sale
$15,997,500
2773 N State Highway 59, Merced, CA 95348
Industrial buildings on 22.3 acres with excess buildable land.
Property Size199,667 SF
Lot Size22.30 Acres
Price / SF$80.08
Days on Market109
Property Features for 2773 N State Highway 59
General Information
Standard status
Active
Size
199,667 SF
Lot size
22.30 Acres
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$43,679
Building Details
Building Size
199,667 SF
Listing Agency:
Tinetti Realty Group
(209) 384-3885
Listed By:
Steve Tinetti · License #00475070
(209) 384-3885
Source:
Elliman
Added: Apr 24
Changed: Aug 8
Last Checked: Apr 24 at 5:40PM
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 Tinetti Realty Group
Investment Insights
Based on property information with market context.
This commercial real estate offering features just under 200,000 square feet of buildings situated on 22.3 acres, with approximately 8.27 acres of excess buildable land available for constructing additional buildings. As of January 1, 2026, the gross scheduled rent is $133,606.68 per month, totaling $1,603,280.00 annually. Building A is a modern, standalone 7,126-square-foot office building, accompanied by a new 2,400-square-foot metal shop building constructed in 2021. Building B is a 15,300-square-foot standalone, fully sprinklered metal building with an attached 240-square-foot office, a minimum 22-foot clear height, and eight roll-up doors. Building C is a 70,902-square-foot fully sprinklered metal building equipped with eight recessed truck docks and a 3,000 AMP electrical service. Building D is a fully sprinklered, concrete tilt-up building with a 24-foot clear height under roof trusses and a 2,000 AMP electrical service, featuring two approximately 12,544-square-foot refrigerated walk-in boxes capable of maintaining a 40-degree temperature. The owner occupies a 5,240-square-foot metal shop attached to the west end of Building D and is willing to either vacate or lease back. The property includes solar panels on the south-facing roofs of Buildings C and D, generating an average of approximately 750 KW per month, tied to the meter in Building D. The property is fully fenced and accessible via electronic gates from both Highway 59 and Cooper Avenue.
Key Highlights
- Significant Income Potential: Gross scheduled rent of $1,603,280.00/year.
- Excess Buildable Land: 8.27+/- acres available for constructing additional buildings.**
- Recently Invested in Improvements: $1M+/- spent on flood‑proofing Buildings C and D, and $1M+/- on solar panel installation.
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
$1,298,060
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
8.11%
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%
$25,961,200
$26.0M
Cap Rate 7%
$18,543,714
$18.5M
Cap Rate 9%
$14,422,889
$14.4M
Market Conditions
NOI Build-Up for 199,766 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
$1.99M $9.96/SF
− Vacancy
−$135.3K −$0.68/SF
EGI
$1.85M $9.28/SF
− OpEx
−$556.3K −$2.78/SF
NOI
$1.30M $6.50/SF
Area
Merced County, CA
Vacancy
6.80%
Lease Rate
$9.96 /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%
$25,961,200
Cap Rate 7%
$18,543,714
Cap Rate 9%
$14,422,889
Alternative Uses
Best Use
Warehouse
$21.23M
$18.57M – $24.76M
NOI $1,485,766 @ 7.0% cap · market cap 9.29%
Second Best
Industrial
$18.54M
$16.23M – $21.63M
NOI $1,298,060 @ 7.0% cap · market cap 8.11%
Theoretical Best
Healthcare Medical
$44.07M
$38.56M – $51.42M
NOI $3,085,186 @ 7.0% cap · market cap 19.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95348, CA
35,066
Population
12,173
Households
2.9
Avg Household Size
30
Median Age
19%
College-Educated
80%
High-School Grad
59.0 sq mi
ZIP Area
594
Density / Sq Mi
$63,618
Median Household Income
$40,171
Median Earnings
$1,498
Median Rent
$352,700
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Industrial buildings on 22.3 acres with excess buildable land.
Where is this warehouse located?
The property is located at 2773 N State Highway 59 Merced, CA.
What is the asking price?
The asking price for this property is $15,997,500.
What are key features of this property?
This property features: Significant Income Potential: Gross scheduled rent of $1,603,280.00/year.; Excess Buildable Land: 8.27+/- acres available for constructing additional buildings.**; Recently Invested in Improvements: $1M+/- spent on flood‑proofing Buildings C and D, and $1M+/- on solar panel installation.
