CBD Mixed-Use Commercial
For Sale
$675,000
453 E Pioneer Ave, Homer, AK 99603
Reconfigurable commercial space with Central Business District zoning and paved on-site parking.
Property Size2,556 SF
Lot Size0.34 Acres
Price / SF$264.08
Days on Market153
Property Features for 453 E Pioneer Ave
General Information
Standard status
Active
Size
2,556 SF
Lot size
0.34 Acres
Property subtype
Commercial
Zoning
CBD
Restaurant
Equipment Included
No
Liquor License
No
Additional Details
Furnished
No
Building Details
Year Built
1960
Buildings
1
Listing Agency:
Berkshire Hathaway HomeServices Alaska Realty
(907) 399-8208
Listed By:
Joleen H Brooks · License #18894
Source:
Seehomesinalaska
Added: Mar 30
Changed: Aug 28
Last Checked: Aug 28 at 2:56PM
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 Berkshire Hathaway HomeServices Alaska Realty
Investment Insights
Based on property information with market context.
Built in 1960, this 2,556-square-foot commercial building occupies a 0.34-acre parcel on E Pioneer Avenue in Homer. The interior is described as flexible and readily adaptable, with potential configurations for office, retail, restaurant, studio, or mixed-use occupancy. Central Business District zoning supports the property’s broad commercial positioning.
A paved parking area provides multiple on-site parking spaces. The building is offered as real property; furniture and equipment are excluded from the sale, although those items may be available under a separate bill of sale. A package option involving the established Alibi business, its furnishings, equipment, and liquor license is also available separately.
A paved parking area provides multiple on-site parking spaces. The building is offered as real property; furniture and equipment are excluded from the sale, although those items may be available under a separate bill of sale. A package option involving the established Alibi business, its furnishings, equipment, and liquor license is also available separately.
Key Highlights
- 2,556‑square‑foot commercial building on a 0.34‑acre lot
- Central Business District (CBD) zoning
- Flexible interior layout for office, retail, restaurant, studio, or mixed‑use concepts
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
$50,923
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
7.54%
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%
$1,018,460
$1.0M
Cap Rate 7%
$727,471
$727.5K
Cap Rate 9%
$565,811
$565.8K
Market Conditions
NOI Build-Up for 2,556 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
$71.8K $28.08/SF
− Vacancy
−$3.9K −$1.52/SF
EGI
$67.9K $26.56/SF
− OpEx
−$17.0K −$6.64/SF
NOI
$50.9K $19.92/SF
Area
Kenai Peninsula County, AK
Vacancy
5.40%
Lease Rate
$28.08 /SF/Yr
Expense Ratio
25.00%
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%
$1,018,460
Cap Rate 7%
$727,471
Cap Rate 9%
$565,811
Alternative Uses
Best Use
Specialty Retail
$727.5K
$636.5K – $848.7K
NOI $50,923 @ 7.0% cap · market cap 7.54%
Second Best
Mixed Use
$251.9K
$220.5K – $293.9K
NOI $17,636 @ 7.0% cap · market cap 2.61%
Theoretical Best
Multifamily LT 5
$17.73M
$15.51M – $20.68M
NOI $1,240,908 @ 7.0% cap · market cap 183.84%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 99603, AK
10,766
Population
6,251
Households
1.7
Avg Household Size
43
Median Age
39%
College-Educated
94%
High-School Grad
1,068.8 sq mi
ZIP Area
10
Density / Sq Mi
$76,368
Median Household Income
$41,530
Median Earnings
$1,236
Median Rent
$345,600
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?
Mixed-use property - Reconfigurable commercial space with Central Business District zoning and paved on-site parking.
Where is this mixed-use property located?
The property is located at 453 E Pioneer Ave Homer, AK.
What is the asking price?
The asking price for this property is $675,000.
What are key features of this property?
This property features: 2,556‑square‑foot commercial building on a 0.34‑acre lot; Central Business District (CBD) zoning; Flexible interior layout for office, retail, restaurant, studio, or mixed‑use concepts
