Fully Occupied Retail Investment
For Sale
$2,348,000
3811 Railroad Ave, Pittsburg, CA 94565
Value-add investment with stable tenants and high cap rate.
Property Size5,950 SF
Lot Size0.52 Acres
Price / SF$394.62
Days on Market276
Property Features for 3811 Railroad Ave
General Information
Standard status
Active
Size
5,950 SF
Lot size
0.52 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1963
Listing Agency:
Promax Investment & Develop
Listed By:
Richard Mao · License #01208299
(510) 552-1687
Source:
Exitrealty
Added: Dec 9, 2025
Changed: Sep 2
Last Checked: Sep 10 at 6:34AM
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 Promax Investment & Develop
Investment Insights
Based on property information with market context.
This fully occupied commercial property presents a value-added investment opportunity, generating approximately 4.5% annual rent with NNN leases that increase yearly. The property currently operates at an 8% cap rate, supported by a stable tenant base consisting of service-oriented businesses. The current annual income is $226,000, with low maintenance costs. Remodeling was completed in 2013 and 2016, including replacement of the roof and HVAC units. Tenants are responsible for all interior maintenance, repairs, and replacements, including HVAC systems and storefront glass. The property is located on a busy major street, near shopping, BART, freeway access, and schools, situated within the city's business district and adjacent to a residential neighborhood. Built in 1963 and remodeled in 2013 and 2016, the building encompasses 5950 square feet on a 22463.79 square foot lot. On-site parking is available with 26 spaces, providing more than 4 spaces per unit. The property's APN/Tax ID is 088-072-068-5. A vacant lot behind the parking area is also for sale, zoned for neighborhood commercial/high-density residential use, potentially allowing for the construction of up to 45 units; confirmation with the city is advised. This offers opportunities for expansion or development. The bike score is 4, indicating it is somewhat bikeable, and the walk score is 14, indicating car-dependent.
Key Highlights
- High 8% actual cap rate provides strong investment return.
- Fully occupied with stable, service‑type tenants ensures consistent income.
- NNN leases with annual rent increases offer predictable income growth.
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
$152,153
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
6.48%
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%
$3,043,060
$3.0M
Cap Rate 7%
$2,173,614
$2.2M
Cap Rate 9%
$1,690,589
$1.7M
Market Conditions
NOI Build-Up for 5,950 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
$232.1K $39.00/SF
− Vacancy
−$14.7K −$2.47/SF
EGI
$217.4K $36.53/SF
− OpEx
−$65.2K −$10.96/SF
NOI
$152.2K $25.57/SF
Area
Contra Costa County, CA
Vacancy
6.33%
Lease Rate
$39.00 /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%
$3,043,060
Cap Rate 7%
$2,173,614
Cap Rate 9%
$1,690,589
Alternative Uses
Best Use
Retail
$2.17M
$1.90M – $2.54M
NOI $152,153 @ 7.0% cap · market cap 6.48%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.25M
$1.97M – $2.62M
NOI $157,437 @ 7.0% cap · market cap 6.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Location Intelligence
Trade Area within ½ mile
598
Businesses Nearby
130k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 56%
Groceries 27%
Dining 8%
Electronics 4%
Foods Co
Groceries
35,155 visits/mo
0.4 miles
Dollar Tree
Shops & Services
18,329 visits/mo
0.4 miles
Wells Fargo
Shops & Services
15,521 visits/mo
0.3 miles
Speedway
Shops & Services
11,160 visits/mo
0.4 miles
Chevron
Shops & Services
7,725 visits/mo
0.2 miles
Demographics for 94565, CA
100,341
Population
31,173
Households
3.2
Avg Household Size
35
Median Age
22%
College-Educated
78%
High-School Grad
45.3 sq mi
ZIP Area
2,215
Density / Sq Mi
$95,035
Median Household Income
$44,149
Median Earnings
$2,145
Median Rent
$563,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Strip mall - Value-add investment with stable tenants and high cap rate.
Where is this strip mall located?
The property is located at 3811 Railroad Ave Pittsburg, CA.
What is the asking price?
The asking price for this property is $2,348,000.
What are key features of this property?
This property features: High 8% actual cap rate provides strong investment return.; Fully occupied with stable, service‑type tenants ensures consistent income.; NNN leases with annual rent increases offer predictable income growth.
