Grocery Anchored Shopping
For Sale
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328-420 N 2nd St, El Cajon, CA 92021
Well-maintained shopping center anchored by a grocery store.
Property Size53,233 SF
Price / SF$366.31
Days on Market688
Property Features for 328-420 N 2nd St
General Information
Standard status
Active
Size
53,233 SF
Property subtype
Retail
Zoning
C-G
Building Details
Year Built
1965
Listing Agency:
CBRE - South Bay
(310) 892-5644
Listed By:
Patrick Wade · License #CA 01454690
Source:
Crexi
Added: Oct 8, 2024
Changed: Aug 26
Last Checked: May 12 at 11:35PM
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 is a well-maintained shopping center with a total area of 53,233 square feet. The property is anchored by a grocery store.
Key Highlights
- Grocery anchored shopping center
- Pride of ownership
- Year built: 1965
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
$642,498
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
3.29%
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%
$12,849,960
$12.8M
Cap Rate 7%
$9,178,543
$9.2M
Cap Rate 9%
$7,138,867
$7.1M
Market Conditions
NOI Build-Up for 53,233 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
$958.2K $18.00/SF
− Vacancy
−$40.3K −$0.76/SF
EGI
$917.9K $17.24/SF
− OpEx
−$275.4K −$5.17/SF
NOI
$642.5K $12.07/SF
Area
El Cajon, CA
Vacancy
4.21%
Lease Rate
$18.00 /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%
$12,849,960
Cap Rate 7%
$9,178,543
Cap Rate 9%
$7,138,867
Alternative Uses
Best Use
Retail
$9.18M
$8.03M – $10.71M
NOI $642,498 @ 7.0% cap · market cap 3.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.23M
$11.57M – $15.43M
NOI $925,835 @ 7.0% cap · market cap 4.75%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,325
Businesses Nearby
511k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 39%
Shops & Services 35%
Groceries 19%
Apparel 3%
Walmart Neighborhood Market
Groceries
62,153 visits/mo
0.2 miles
McDonald's
Dining
29,374 visits/mo
0.2 miles
Sprouts Farmers Market
Groceries
24,478 visits/mo
0.3 miles
Soapy Joe's Car Wash
Shops & Services
23,630 visits/mo
0.4 miles
Dollar Tree
Shops & Services
23,206 visits/mo
0.1 miles
Demographics for 92021, CA
70,584
Population
23,360
Households
3
Avg Household Size
37
Median Age
22%
College-Educated
86%
High-School Grad
28.0 sq mi
ZIP Area
2,521
Density / Sq Mi
$69,979
Median Household Income
$37,739
Median Earnings
$1,818
Median Rent
$572,000
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Well-maintained shopping center anchored by a grocery store.
Where is this shopping center located?
The property is located at 328-420 N 2nd St El Cajon, CA.
What is the asking price?
The asking price for this property is $19,500,000.
What are key features of this property?
This property features: Grocery anchored shopping center; Pride of ownership; Year built: 1965
