Melrose Mixed-Use Commercial
For Sale
$949,000
307/309 STATE ROAD 26, Melrose, FL 32666
Two attractive buildings in the heart of Melrose, Florida.
Property Size5,664 SF
Lot Size0.76 Acres
Days on Market164
Property Features for 307/309 STATE ROAD 26
General Information
Standard status
Active
Size
5,664 SF
Lot size
0.76 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$5,847
Building Details
Building Size
5,664 SF
Year Built
2011
Listing Agency:
Coldwell Banker M.M. Parrish Realtors
(352) 665-9731
Listed By:
Perry Pursell · License #BK518980
(352) 665-9731
Source:
Elliman
Added: Mar 12
Changed: Aug 14
Last Checked: Aug 22 at 11:15AM
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 Coldwell Banker M.M. Parrish Realtors
Investment Insights
Based on property information with market context.
The Melrose Center features two attractive buildings situated in the heart of Melrose. These buildings offer a limited selection of commercial property facing Hwy 26, a major roadway connecting Gainesville to Putnam Hall, Florida. The front building, known as “The Studios of Melrose”, comprises eleven mixed-use offices accommodating healthcare providers, artist studios, and a multi-room art gallery. The building showcases a Victorian four-square design, a historic standard in the town. The Center is licensed as a fifty-seat full-service restaurant with both inside and outside eating areas. The kitchen was fully renovated in 2021, with much of the equipment upgraded. The facility includes both inside and outside stages used weekly to showcase musicians. The inside hall also displays local artists’ work. Certified by Visit Florida, the Welcome and Information Center serves the broader Lake Area Region spanning Gainesville, Ocala, Palatka, St. Augustine, and Jacksonville, and is affiliated with all statewide Welcome Centers through Visit Florida. Located between I-75 and I-95, the site benefits from high visibility, with 8,000–10,000 cars passing daily. The property combines a restaurant, art house, and community gathering place, presenting an opportunity for those interested in owning a venue where food and art converge.
Key Highlights
- Prime location on Hwy 26 with high visibility (8,000‑10,000 cars daily).
- Licensed 50‑seat full‑service restaurant with indoor and outdoor seating.
- Fully renovated kitchen (2021) with upgraded equipment.
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
$62,823
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
6.62%
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%
$1,256,460
$1.3M
Cap Rate 7%
$897,471
$897.5K
Cap Rate 9%
$698,033
$698.0K
Market Conditions
NOI Build-Up for 5,664 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
$88.4K $15.60/SF
− Vacancy
−$4.6K −$0.81/SF
EGI
$83.8K $14.79/SF
− OpEx
−$20.9K −$3.70/SF
NOI
$62.8K $11.09/SF
Area
Putnam County, FL
Vacancy
5.20%
Lease Rate
$15.60 /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%
$1,256,460
Cap Rate 7%
$897,471
Cap Rate 9%
$698,033
Alternative Uses
Best Use
Specialty Retail
$897.5K
$785.3K – $1.05M
NOI $62,823 @ 7.0% cap · market cap 6.62%
Second Best
Mixed Use
$710.0K
$621.3K – $828.4K
NOI $49,702 @ 7.0% cap · market cap 5.24%
Theoretical Best
Office A
$1.48M
$1.29M – $1.72M
NOI $103,254 @ 7.0% cap · market cap 10.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
173
Businesses Nearby
Explore this area
Business Placement
Demographics for 32666, FL
5,961
Population
3,398
Households
1.8
Avg Household Size
51
Median Age
30%
College-Educated
97%
High-School Grad
56.8 sq mi
ZIP Area
105
Density / Sq Mi
$66,540
Median Household Income
$35,669
Median Earnings
$519
Median Rent
$206,000
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two attractive buildings in the heart of Melrose, Florida.
Where is this mixed-use property located?
The property is located at 307/309 STATE ROAD 26 Melrose, FL.
What is the asking price?
The asking price for this property is $949,000.
What are key features of this property?
This property features: Prime location on Hwy 26 with high visibility (8,000‑10,000 cars daily).; Licensed 50‑seat full‑service restaurant with indoor and outdoor seating.; Fully renovated kitchen (2021) with upgraded equipment.
