Historic Hollister Mixed-Use Investment
For Sale
$6,565,000
500 San Benito Street, Hollister, CA 95023
Downtown Hollister mixed-use property with restaurant and residential units.
Property Size17,569 SF
Price / SF$373.67
Days on Market227
Property Features for 500 San Benito Street
General Information
Standard status
Active
Size
17,569 SF
Property subtype
Commercial
Amenities
Elevator/Lift
Off Street Parking
On Street
Building Details
Year Built
1929
Listing Agency:
INTERO REAL ESTATE SERVICES
(408) 840-7400
Listed By:
BRYSON SMITH · License #02118821
Source:
Corcoran
Added: Jan 7
Changed: Aug 21
Last Checked: Aug 21 at 8:49AM
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 INTERO REAL ESTATE SERVICES
Investment Insights
Based on property information with market context.
Located in the heart of Downtown Hollister, 500 San Benito Street is a historic mixed-use investment property. Constructed in the late 1920s, the property is a contributing structure within the Downtown Hollister Historic District and features reinforced concrete construction. The building includes a ground-floor restaurant and residential units above. The commercial space is currently leased. The property is undergoing a significant renovation, with the building shell and structural components updated both inside and out. The residential portion is being built out to include 12 apartments, consisting of six one-bedroom units and six two-bedroom units. Individual unit control is provided via ductless mini-split HVAC systems. Recent capital improvements include a refinished low-slope commercial membrane roof. Renovations are in progress and nearing completion, positioning the property for stabilized mixed-use operation. The property is near City Hall, retail, dining, and civic amenities. The property size is 17569 square feet.
Key Highlights
- Stable in‑place income from leased commercial space (restaurant).
- Prime downtown location near City Hall, retail, dining, and civic amenities.
- Significant renovation underway, including 12 new apartments (6 one‑bedroom, 6 two‑bedroom) with individual mini‑split HVAC systems.
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
$303,065
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
4.62%
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%
$6,061,300
$6.1M
Cap Rate 7%
$4,329,500
$4.3M
Cap Rate 9%
$3,367,389
$3.4M
Market Conditions
NOI Build-Up for 17,569 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
$527.1K $30.00/SF
− Vacancy
−$42.2K −$2.40/SF
EGI
$484.9K $27.60/SF
− OpEx
−$181.8K −$10.35/SF
NOI
$303.1K $17.25/SF
Area
San Benito County, CA
Vacancy
8.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$6,061,300
Cap Rate 7%
$4,329,500
Cap Rate 9%
$3,367,389
Alternative Uses
Best Use
Mixed Use
$4.33M
$3.79M – $5.05M
NOI $303,065 @ 7.0% cap · market cap 4.62%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$10.61M
$9.28M – $12.37M
NOI $742,467 @ 7.0% cap · market cap 11.31%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,284
Businesses Nearby
Explore this area
Business Placement
Demographics for 95023, CA
56,973
Population
18,043
Households
3.2
Avg Household Size
36
Median Age
21%
College-Educated
83%
High-School Grad
394.8 sq mi
ZIP Area
144
Density / Sq Mi
$108,156
Median Household Income
$47,362
Median Earnings
$1,908
Median Rent
$740,500
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Downtown Hollister mixed-use property with restaurant and residential units.
Where is this mixed-use property located?
The property is located at 500 San Benito Street Hollister, CA.
What is the asking price?
The asking price for this property is $6,565,000.
What are key features of this property?
This property features: Stable in‑place income from leased commercial space (restaurant).; Prime downtown location near City Hall, retail, dining, and civic amenities.; Significant renovation underway, including **12 new apartments (6 one‑bedroom, 6 two‑bedroom) with individual mini‑split HVAC systems.**
