Three-Tenant Auto Shop
For Sale
$950,000
405 Mchenry AVE, Modesto, CA 95354
Fully leased corner property with three occupants along an established commercial corridor.
Property Size5,640 SF
Price / SF$168.44
Days on Market10
Property Features for 405 Mchenry AVE
General Information
Standard status
Active
Size
5,640 SF
Property subtype
Commercial/Industrial
Occupancy
100%
Site & Location
Corner Location
Yes
Road Access
Yes
Additional Details
Gross Income
$104,400
Building Details
Year Built
1967
Tenancy
Multi
Listing Agency:
Atlantic Realty
(209) 604-5280
Listed By:
Jonathan S. Hogan · License #01894328
(209) 604-5280
Source:
Exitrealty
Added: Aug 1
Changed: Aug 9
Last Checked: Aug 10 at 5:15AM
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 Atlantic Realty
Investment Insights
Based on property information with market context.
This 5,640-square-foot auto shop property was built in 1967 and is fully leased to three established tenants. The configuration provides multiple occupancies within a single commercial asset, while the auto-oriented classification supports its role within the local business corridor.
The property occupies the corner of McHenry Avenue and Stoddard Avenue at 405 McHenry Avenue in Modesto. Its setting places it among local businesses, restaurants, professional offices, and service providers, with residential neighborhoods and established commercial development nearby. The site is positioned along the McHenry Avenue corridor, one of the area’s active commercial routes, and benefits from direct corner exposure and convenient access.
The property occupies the corner of McHenry Avenue and Stoddard Avenue at 405 McHenry Avenue in Modesto. Its setting places it among local businesses, restaurants, professional offices, and service providers, with residential neighborhoods and established commercial development nearby. The site is positioned along the McHenry Avenue corridor, one of the area’s active commercial routes, and benefits from direct corner exposure and convenient access.
Key Highlights
- 5,640‑square‑foot auto shop property built in 1967
- Fully leased to three established tenants
- Corner location at McHenry Avenue and Stoddard Avenue
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
$53,724
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
5.66%
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%
$1,074,480
$1.1M
Cap Rate 7%
$767,486
$767.5K
Cap Rate 9%
$596,933
$596.9K
Market Conditions
NOI Build-Up for 5,640 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
$81.2K $14.40/SF
− Vacancy
−$4.5K −$0.79/SF
EGI
$76.7K $13.61/SF
− OpEx
−$23.0K −$4.08/SF
NOI
$53.7K $9.53/SF
Area
Modesto, CA
Vacancy
5.50%
Lease Rate
$14.40 /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%
$1,074,480
Cap Rate 7%
$767,486
Cap Rate 9%
$596,933
Alternative Uses
Best Use
Specialty Retail
$1.37M
$1.20M – $1.60M
NOI $95,936 @ 7.0% cap · market cap 10.10%
Second Best
Retail
$1.25M
$1.09M – $1.46M
NOI $87,471 @ 7.0% cap · market cap 9.21%
Theoretical Best
Office A
$1.90M
$1.66M – $2.21M
NOI $132,653 @ 7.0% cap · market cap 13.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,974
Businesses Nearby
312k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 47%
Groceries 31%
Shops & Services 12%
Beauty & Spa 4%
Safeway
Groceries
63,750 visits/mo
0.4 miles
Dutch Bros. Coffee
Dining
30,727 visits/mo
0.1 miles
Sprouts Farmers Market
Groceries
24,875 visits/mo
0.3 miles
The Habit Burger Grill
Dining
23,335 visits/mo
0.4 miles
Starbucks
Dining
17,065 visits/mo
0.3 miles
Demographics for 95354, CA
26,765
Population
9,797
Households
2.7
Avg Household Size
36
Median Age
17%
College-Educated
80%
High-School Grad
7.7 sq mi
ZIP Area
3,476
Density / Sq Mi
$65,643
Median Household Income
$42,126
Median Earnings
$1,463
Median Rent
$360,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Auto shop - Fully leased corner property with three occupants along an established commercial corridor.
Where is this auto shop located?
The property is located at 405 Mchenry AVE Modesto, CA.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: 5,640‑square‑foot auto shop property built in 1967; Fully leased to three established tenants; Corner location at McHenry Avenue and Stoddard Avenue
