Main Street Motel Repositioning
For Sale
Contact for pricing
3494 Main Street, San Diego, CA 92113
Former 27-room motel on 0.51 acres for redevelopment.
Property Size10,834 SF
Lot Size0.51 Acres
Price / SF$161.53
Days on Market110
Property Features for 3494 Main Street
General Information
Standard status
Active
Size
10,834 SF
Lot size
0.51 Acres
Property subtype
Hospitality
Zoning
IH-1-1
Investment Type
Redevelopment
Building Details
Buildings
4
Stories
2
Listing Agency:
NewGen Advisory
(520) 664-4091
Listed By:
Kishan Gohel · License #SA684403000
Source:
Crexi
Added: May 15
Changed: Aug 8
Last Checked: Aug 31 at 5:46PM
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 NewGen Advisory
Investment Insights
Based on property information with market context.
The Main Street Motel is a former 27-room, two-story independent economy hotel situated in San Diego’s South/East submarket. The property is located on a 0.51-acre urban lot and offers visibility along Main Street, with convenient access to Interstate 5, public transit, and San Diego International Airport. The property has IH-1-1 zoning and features exterior corridor access and surface parking. The layout is functional. The property is currently closed and presents a repositioning opportunity for investors and developers. Located within an Opportunity Zone, the asset offers potential for redevelopment, conversion to a recognized hotel brand, or renovation to maximize the site’s potential. The property is permit-ready, with asbestos abatement and demolition work already completed and approved by city inspection, allowing a buyer to begin renovation immediately. The building size is 10,834 square feet.
Key Highlights
- Permit‑ready: Asbestos abatement and demolition completed and approved, allowing immediate renovation.
- Repositioning opportunity: Ideal for redevelopment, conversion to a recognized hotel brand, or renovation.
- Opportunity Zone: Offers potential tax benefits for investors and developers.
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
$66,694
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
3.81%
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%
$1,333,880
$1.3M
Cap Rate 7%
$952,771
$952.8K
Cap Rate 9%
$741,044
$741.0K
Market Conditions
NOI Build-Up for 10,834 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
$156.0K $14.40/SF
− Vacancy
−$15.6K −$1.44/SF
EGI
$140.4K $12.96/SF
− OpEx
−$73.7K −$6.80/SF
NOI
$66.7K $6.16/SF
Area
San Diego, CA
Vacancy
10.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
52.50%
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%
$1,333,880
Cap Rate 7%
$952,771
Cap Rate 9%
$741,044
Alternative Uses
Best Use
Hotel Hospitality
$952.8K
$833.7K – $1.11M
NOI $66,694 @ 7.0% cap · market cap 3.81%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.28M
$3.74M – $4.99M
NOI $299,538 @ 7.0% cap · market cap 17.12%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
786
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 92113, CA
50,457
Population
14,443
Households
3.5
Avg Household Size
32
Median Age
11%
College-Educated
69%
High-School Grad
4.5 sq mi
ZIP Area
11,213
Density / Sq Mi
$59,177
Median Household Income
$31,099
Median Earnings
$1,608
Median Rent
$559,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Motel - Former 27-room motel on 0.51 acres for redevelopment.
Where is this motel located?
The property is located at 3494 Main Street San Diego, CA.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: Permit‑ready: Asbestos abatement and demolition completed and approved, allowing immediate renovation.; Repositioning opportunity: Ideal for redevelopment, conversion to a recognized hotel brand, or renovation.; Opportunity Zone: Offers potential tax benefits for investors and developers.
