Gated-Access Distribution
For Sale
$15,997,500
2777 N State Highway 59, Merced, CA 95348
Large industrial campus with multiple building types, expansion acreage, and access from two roads.
Property Size199,667 SF
Lot Size22.30 Acres
Price / SF$80.12
Days on Market59
Property Features for 2777 N State Highway 59
General Information
Standard status
Active
Size
199,667 SF
Lot size
22.30 Acres
Property subtype
Commercial
Site & Location
Highway Access
Yes
Road Access
Yes
Warehouse & Industrial
Dock-High Doors
8
Cold Storage
Yes
Cold Storage Area
25,000 SF
Cooler
25,000 SF
Additional Details
Gross Income
$1,600,000
Building Details
Buildings
5
Tenancy
Multi
Listing Agency:
Tinetti Realty
3843885
Listed By:
Stephen G. Tinetti
Source:
Homesofgreatersacramento
Added: Jul 4
Changed: Aug 30
Last Checked: Aug 30 at 3:31PM
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
Investment Insights
Based on property information with market context.
This 22.3-acre industrial campus contains 199,667 square feet across five primary buildings supporting office, warehouse, manufacturing, refrigerated storage, and distribution uses. Building A includes a 7,126-square-foot office and a 2,400-square-foot metal shop completed in 2021. Building B provides 15,540 square feet, 22-foot clear height, sprinkler protection, and eight roll-up doors. Buildings C and D add approximately 169,000 square feet of contiguous industrial space, including truck docks, substantial electrical capacity, and refrigerated cooler rooms totaling approximately 25,000 square feet.
Gated entry is available from Highway 59 and Cooper Avenue. Approximately 8.27 acres remain available for future development or expansion. The property also includes rooftop solar serving Buildings C and D, along with flood protection improvements and electrical service from Merced Irrigation District. Existing leased areas and vacant space provide a combination of operating occupancy and immediate availability within the campus.
Gated entry is available from Highway 59 and Cooper Avenue. Approximately 8.27 acres remain available for future development or expansion. The property also includes rooftop solar serving Buildings C and D, along with flood protection improvements and electrical service from Merced Irrigation District. Existing leased areas and vacant space provide a combination of operating occupancy and immediate availability within the campus.
Key Highlights
- 199,667 SF industrial campus on 22.3 acres
- Five primary buildings spanning office, warehouse, manufacturing, refrigerated storage, and distribution uses
- Approximately 8.27 acres of excess developable land
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
$1,297,417
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%
$25,948,340
$25.9M
Cap Rate 7%
$18,534,529
$18.5M
Cap Rate 9%
$14,415,744
$14.4M
Market Conditions
NOI Build-Up for 199,667 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
−$135.2K −$0.68/SF
EGI
$1.85M $9.28/SF
− OpEx
−$556.0K −$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%
$25,948,340
Cap Rate 7%
$18,534,529
Cap Rate 9%
$14,415,744
Alternative Uses
Best Use
Warehouse
$21.21M
$18.56M – $24.75M
NOI $1,485,030 @ 7.0% cap · market cap 9.28%
Second Best
Industrial
$18.53M
$16.22M – $21.62M
NOI $1,297,417 @ 7.0% cap · market cap 8.11%
Theoretical Best
Healthcare Medical
$44.05M
$38.55M – $51.39M
NOI $3,083,657 @ 7.0% cap · market cap 19.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
8
Dock-high doors
Multi-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
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?
Distribution center - Large industrial campus with multiple building types, expansion acreage, and access from two roads.
Where is this distribution center located?
The property is located at 2777 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: 199,667 SF industrial campus on 22.3 acres; Five primary buildings spanning office, warehouse, manufacturing, refrigerated storage, and distribution uses; Approximately 8.27 acres of excess developable land
