Mixed-Use Property with Retail
For Sale
$395,000
38 South Main Street, Willits, CA 95490
Two-story downtown asset combining storefront, residential, office, garage, and storage components.
Property Size7,184 SF
Price / SF$54.98
Days on Market212
Property Features for 38 South Main Street
General Information
Standard status
Active
Size
7,184 SF
Property subtype
Commercial Sale / Mixed Use
Additional Details
Utilities to Site
Yes
Office Units
1
Amenities
Central, MultiUnits, Wall Unit(s), Other
Natural Gas
Carpet, Concrete Slab, Other
Other
2 Story
2
Slab, Other
Building Details
Year Built
1910
Tenancy
Multi
Listing Agency:
Coldwell Banker Mendo Realty
(707) 367-0389
Listed By:
Tara M Moratti · License #01420657
(707) 367-0389
Source:
Compass
Added: Jan 30
Changed: Aug 29
Last Checked: Aug 29 at 4:58PM
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 Mendo Realty
Investment Insights
Based on property information with market context.
This two-story mixed-use property contains 7,184 square feet and five income units arranged across retail, residential, and office components. The ground floor includes two storefronts, with one currently occupied by a single tenant, while two residential units are located upstairs alongside an additional office space. Multiple entrances and separate utility meters support distinct access and operational arrangements.
The property includes alley access serving the south retail area, plus an on-site garage and storage area. Constructed in 1910, the building features central and wall-unit heating and cooling, natural gas service, carpet and concrete slab flooring, and a slab foundation. The offering is presented as-is, with renovation and system-upgrade work identified as part of the property’s repositioning strategy.
The property includes alley access serving the south retail area, plus an on-site garage and storage area. Constructed in 1910, the building features central and wall-unit heating and cooling, natural gas service, carpet and concrete slab flooring, and a slab foundation. The offering is presented as-is, with renovation and system-upgrade work identified as part of the property’s repositioning strategy.
Key Highlights
- 7,184 SF mixed‑use property with 5 income units
- Two ground‑floor retail storefronts, two second‑floor residential units, and one office space
- Multiple entrances and separate utility meters
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
$14,074
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
3.56%
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%
$281,480
$281.5K
Cap Rate 7%
$201,057
$201.1K
Cap Rate 9%
$156,378
$156.4K
Market Conditions
NOI Build-Up for 7,184 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
$22.4K $3.12/SF
− Vacancy
−$2.3K −$0.32/SF
EGI
$20.1K $2.80/SF
− OpEx
−$6.0K −$0.84/SF
NOI
$14.1K $1.96/SF
Area
Mendocino County, CA
Vacancy
10.30%
Lease Rate
$3.12 /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%
$281,480
Cap Rate 7%
$201,057
Cap Rate 9%
$156,378
Alternative Uses
Best Use
Mixed Use
$1.25M
$1.09M – $1.45M
NOI $87,286 @ 7.0% cap · market cap 22.10%
Second Best
Multifamily LT 5
$949.1K
$830.4K – $1.11M
NOI $66,434 @ 7.0% cap · market cap 16.82%
Theoretical Best
Flex RnD
$2.69M
$2.35M – $3.13M
NOI $188,009 @ 7.0% cap · market cap 47.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
601
Businesses Nearby
Explore this area
Business Placement
Demographics for 95490, CA
14,227
Population
6,077
Households
2.3
Avg Household Size
42
Median Age
23%
College-Educated
89%
High-School Grad
430.1 sq mi
ZIP Area
33
Density / Sq Mi
$67,069
Median Household Income
$44,362
Median Earnings
$1,243
Median Rent
$383,900
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-story downtown asset combining storefront, residential, office, garage, and storage components.
Where is this mixed-use property located?
The property is located at 38 South Main Street Willits, CA.
What is the asking price?
The asking price for this property is $395,000.
What are key features of this property?
This property features: 7,184 SF mixed‑use property with 5 income units; Two ground‑floor retail storefronts, two second‑floor residential units, and one office space; Multiple entrances and separate utility meters
