Single-Tenant Grocery Asset For
For Sale
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291 MCCRAY ST, Hollister, CA 95023
Single-tenant grocery property with absolute NNN lease in Hollister, CA.
Property Size62,239 SF
Price / SF$301.83
Days on Market108
Property Features for 291 MCCRAY ST
General Information
Standard status
Active
Size
62,239 SF
Total Parking Spaces
248
Property subtype
Retail
Occupancy
100%
Investment Type
Net Lease
Net Operating Income
$1,164,707
Building Details
Units
1
Tenancy
Single
Listing Agency:
CBRE - South Bay
(310) 892-5644
Listed By:
Patrick Wade · License #CA 01454690
Source:
Crexi
Added: May 11
Changed: Aug 24
Last Checked: Aug 23 at 9:51PM
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 CBRE - South Bay
Investment Insights
Based on property information with market context.
This commercial real estate offering features a single-tenant grocery asset located in Hollister, California. The property, suitable for grocery and convenience stores as well as other retail purposes, has a size of 62239 square feet. The property is offered for sale under an absolute NNN lease agreement.
Key Highlights
- Single‑Tenant property, offering a straightforward investment opportunity.
- Absolute NNN Lease ensures minimal landlord responsibilities.
- Grocery Asset, a stable and essential business.
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
$1,681,168
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
8.95%
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%
$33,623,360
$33.6M
Cap Rate 7%
$24,016,686
$24.0M
Cap Rate 9%
$18,679,644
$18.7M
Market Conditions
NOI Build-Up for 62,239 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
$2.52M $40.44/SF
− Vacancy
−$115.3K −$1.85/SF
EGI
$2.40M $38.59/SF
− OpEx
−$720.5K −$11.58/SF
NOI
$1.68M $27.01/SF
Area
San Benito County, CA
Vacancy
4.58%
Lease Rate
$40.44 /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%
$33,623,360
Cap Rate 7%
$24,016,686
Cap Rate 9%
$18,679,644
Alternative Uses
Best Use
Retail
$24.02M
$21.01M – $28.02M
NOI $1,681,168 @ 7.0% cap · market cap 8.95%
Second Best
Specialty Retail
$16.55M
$14.48M – $19.31M
NOI $1,158,392 @ 7.0% cap · market cap 6.17%
Theoretical Best
Office A
$37.57M
$32.88M – $43.84M
NOI $2,630,225 @ 7.0% cap · market cap 14.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,284
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95023, CA
56,973
Population
18,043
Households
3.2
Avg Household Size
36
Median Age
21%
College-Educated
83%
High-School Grad
394.8 sq mi
ZIP Area
144
Density / Sq Mi
$108,156
Median Household Income
$47,362
Median Earnings
$1,908
Median Rent
$740,500
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Hollister Super #2 — 211 3rd St, Hollister, CA 95023
- Lucky — 291 McCray St, Hollister, CA 95023
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Single-tenant grocery property with absolute NNN lease in Hollister, CA.
Where is this grocery and convenience store located?
The property is located at 291 MCCRAY ST Hollister, CA.
What is the asking price?
The asking price for this property is $18,785,596.
What are key features of this property?
This property features: Single‑Tenant property, offering a straightforward investment opportunity.; Absolute NNN Lease ensures minimal landlord responsibilities.; Grocery Asset, a stable and essential business.
