Ground-Floor Retail
New
For Sale
$425,000
401 W Grand Avenue 1-1, Grover Beach, CA 93433
Cold-shell commercial condo with patio, positioned for restaurant, coffee shop, or retail use.
Property Size1,047 SF
Price / SF$405.92
Days on Market2
Property Features for 401 W Grand Avenue 1-1
General Information
Standard status
Active
Size
1,047 SF
Space & Availability
Floor
Ground
Furnished
No
Restaurant
Patio
Yes
Equipment Included
No
Listing Agency:
Hart Commercial Real Estate
Listed By:
Jason Hart · License #01334694
(805) 481-9010
Source:
Myfabuloushome
Added: Sep 12
Last Checked: Sep 12 at 2:38PM
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 commercial condominium is being delivered as a cold shell within the Encore development. The unit contains 1,047 SF and includes a 462 SF patio, providing dedicated indoor and outdoor areas for a restaurant, coffee shop, or retail concept.
Encore is planned with 59 luxury condominiums, ocean views, and a rooftop deck. The property is located at 401 W Grand Avenue in Grover Beach, near the Grand Avenue beach entrance, an area that attracts tourist traffic. The development is part of the West End area’s planned new construction and is positioned at the entrance to the community.
Encore is planned with 59 luxury condominiums, ocean views, and a rooftop deck. The property is located at 401 W Grand Avenue in Grover Beach, near the Grand Avenue beach entrance, an area that attracts tourist traffic. The development is part of the West End area’s planned new construction and is positioned at the entrance to the community.
Key Highlights
- 1,047 SF ground‑floor commercial condo
- 462 SF patio included
- Delivered as a cold shell
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
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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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Retail space - Cold-shell commercial condo with patio, positioned for restaurant, coffee shop, or retail use.
Where is this retail space located?
The property is located at 401 W Grand Avenue 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: 1,047 SF ground‑floor commercial condo; 462 SF patio included; Delivered as a cold shell
