Santa Maria Retail Investment
For Sale
Contact for pricing
Pending
508 W Main St, Santa Maria, CA 93458
100% occupied retail property with value-add potential in Santa Maria.
Property Size9,122 SF
Lot Size0.33 Acres
Days on Market112
Property Features for 508 W Main St
General Information
Standard status
Pending
Size
9,122 SF
Lot size
0.33 Acres
Property subtype
Retail
Zoning
C-2
Occupancy
100%
Lease Type
Gross
Investment Type
Stabilized
Building Details
Units
6
Tenancy
Multi
Listing Agency:
Lee & Associates - San Luis Obispo - Central California
(805) 218-5766
Listed By:
Alex Olsen · License #01126609
Source:
Crexi
Added: Apr 21
Changed: Aug 8
Last Checked: Aug 8 at 7:13AM
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 Lee & Associates - San Luis Obispo - Central California
Investment Insights
Based on property information with market context.
Located on West Main Street in Santa Maria, the property at 508-518 W Main Street is a 100% occupied, multi-tenant retail investment. The property contains approximately 9,122 square feet of space. Situated on Highway 166, the site benefits from a traffic volume of 24,050 cars per day. The property is one block west of the Santa Maria Town Center. The property is zoned C-2 and includes on-site parking. The site consists of six units across three buildings on a lot of approximately 14,374 square feet. All six units are currently leased, generating an annual gross income of $172,362. The tenant mix includes a full-service restaurant, financial services, health and beauty services, and specialty retail. Five of the six leases expire on August 31, 2026. Santa Maria is the largest city in Santa Barbara County, with a population of approximately 110,000, and serves as the commercial hub of the Central Coast's tri-county region. The demographics within a 3-mile radius include 103,269 residents and an average household income of $96,863.
Key Highlights
- 100% occupied multi‑tenant retail investment property generating $172,362 in annual gross income.
- Significant value‑add opportunity through rent adjustments and conversion to NNN leases.
- High‑traffic location on Highway 166 (W Main Street) with 24,050 cars per day**.
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
$126,201
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
7.01%
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%
$2,524,020
$2.5M
Cap Rate 7%
$1,802,871
$1.8M
Cap Rate 9%
$1,402,233
$1.4M
Market Conditions
NOI Build-Up for 9,122 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
$197.0K $21.60/SF
− Vacancy
−$16.7K −$1.84/SF
EGI
$180.3K $19.76/SF
− OpEx
−$54.1K −$5.93/SF
NOI
$126.2K $13.83/SF
Area
Santa Maria, CA
Vacancy
8.50%
Lease Rate
$21.60 /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%
$2,524,020
Cap Rate 7%
$1,802,871
Cap Rate 9%
$1,402,233
Alternative Uses
Best Use
Retail
$1.80M
$1.58M – $2.10M
NOI $126,201 @ 7.0% cap · market cap 7.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.08M
$2.70M – $3.60M
NOI $215,775 @ 7.0% cap · market cap 11.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,089
Businesses Nearby
96k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 41%
Shops & Services 40%
Dining 18%
Electronics 2%
Walmart Neighborhood Market
Groceries
38,707 visits/mo
0.4 miles
Dollar Tree
Shops & Services
21,094 visits/mo
0.5 miles
El Toro
Dining
11,283 visits/mo
0.3 miles
Speedway
Shops & Services
8,347 visits/mo
0.3 miles
Taco Bell
Dining
5,557 visits/mo
0.4 miles
Demographics for 93458, CA
59,927
Population
14,433
Households
4.2
Avg Household Size
28
Median Age
9%
College-Educated
50%
High-School Grad
28.4 sq mi
ZIP Area
2,110
Density / Sq Mi
$73,518
Median Household Income
$30,278
Median Earnings
$1,825
Median Rent
$460,300
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?
Strip mall - 100% occupied retail property with value-add potential in Santa Maria.
Where is this strip mall located?
The property is located at 508 W Main St Santa Maria, CA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 100% occupied multi‑tenant retail investment property generating $172,362 in annual gross income.; Significant value‑add opportunity through rent adjustments and conversion to NNN leases.; High‑traffic location on Highway 166 (W Main Street) with 24,050 cars per day**.
