Ground-Floor Retail Condo with
For Sale
$425,000
401 Grand Avenue Unit 1-1, Grover Beach, CA 93433
Cold-shell commercial condo with patio in a mixed-use residential development near the Grand Avenue beach entrance.
Property Size1,047 SF
Price / SF$405.92
Days on Market181
Property Features for 401 Grand Avenue Unit 1-1
General Information
Standard status
Active
Size
1,047 SF
Property subtype
Retail
Additional Details
Floor
Ground
Patio
Yes
Amenities
patio
3
Corner Lot.
Corner.
Listing Agency:
(805) 481-9010
Listed By:
Hart Commercial Real Estate
Source:
Xome
Added: Mar 7
Changed: Sep 4
Last Checked: Sep 2 at 4:02AM
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 Hart Commercial Real Estate
Investment Insights
Based on property information with market context.
This ground-floor retail space is offered as a commercial condominium in Encore, a new development at 401 W Grand Avenue. The unit will be delivered as a cold shell and includes a 462 SF patio. The first phase includes two commercial condos intended for restaurant, coffee shop, and retail uses.
Encore is planned with 59 luxury condominiums, ocean views, and a rooftop deck. The property is positioned at the entrance to Grover Beach and within the city’s West End development area, with the Grand Avenue beach entrance and its associated tourist traffic nearby. The surrounding development is described as part of Grover Beach’s expanding downtown district.
Encore is planned with 59 luxury condominiums, ocean views, and a rooftop deck. The property is positioned at the entrance to Grover Beach and within the city’s West End development area, with the Grand Avenue beach entrance and its associated tourist traffic nearby. The surrounding development is described as part of Grover Beach’s expanding downtown district.
Key Highlights
- Ground‑floor commercial condominium delivered as a cold shell
- 462 SF patio included with the unit
- First phase includes two ground‑floor commercial condos
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
$17,009
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
4.00%
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%
$340,180
$340.2K
Cap Rate 7%
$242,986
$243.0K
Cap Rate 9%
$188,989
$189.0K
Market Conditions
NOI Build-Up for 1,047 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
$25.1K $24.00/SF
− Vacancy
−$829 −$0.79/SF
EGI
$24.3K $23.21/SF
− OpEx
−$7.3K −$6.96/SF
NOI
$17.0K $16.25/SF
Area
San Luis Obispo County, CA
Vacancy
3.30%
Lease Rate
$24.00 /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%
$340,180
Cap Rate 7%
$242,986
Cap Rate 9%
$188,989
Alternative Uses
Best Use
Retail
$243.0K
$212.6K – $283.5K
NOI $17,009 @ 7.0% cap · market cap 4.00%
Second Best
Specialty Retail
$214.0K
$187.3K – $249.7K
NOI $14,981 @ 7.0% cap · market cap 3.52%
Theoretical Best
Healthcare Medical
$411.8K
$360.3K – $480.4K
NOI $28,824 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,207
Businesses Nearby
3k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Rabobank
Shops & Services
2,524 visits/mo
0.5 miles
Demographics for 93433, CA
12,643
Population
5,757
Households
2.2
Avg Household Size
42
Median Age
27%
College-Educated
83%
High-School Grad
2.2 sq mi
ZIP Area
5,747
Density / Sq Mi
$82,534
Median Household Income
$39,412
Median Earnings
$1,921
Median Rent
$691,900
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?
Retail space - Cold-shell commercial condo with patio in a mixed-use residential development near the Grand Avenue beach entrance.
Where is this retail space located?
The property is located at 401 Grand Avenue Unit 1-1 Grover Beach, CA.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: Ground‑floor commercial condominium delivered as a cold shell; 462 SF patio included with the unit; First phase includes two ground‑floor commercial condos
