Oceanside Landmark Retail Investment
For Sale
$4,290,000
525 S Coast Hwy 101, Oceanside, CA 92054
Prime Oceanside location with strong tenants and income potential.
Property Size8,550 SF
Lot Size0.32 Acres
Price / SF$501.75
Days on Market171
Property Features for 525 S Coast Hwy 101
General Information
Standard status
Active
Size
8,550 SF
Lot size
0.32 Acres
Property subtype
Retail
Building Details
Building Size
8,550 SF
Year Built
2000
Listing Agency:
Coldwell Banker Realty
Listed By:
Mie Kim · License #01754560
Source:
Velocityrealtysd
Added: Mar 27
Changed: Sep 8
Last Checked: Sep 12 at 9:28AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
Located on South Coast Highway in Oceanside, California, this property occupies a prime position in the city’s coastal revitalization area, eight blocks from the Pacific Ocean. The property features an 8,550 square-foot stand-alone building on a 14,091 square-foot corner lot, known for its architectural design. The site includes 25 dedicated parking spaces. A T-Mobile cell tower is located on-site, providing a passive income source. The property benefits from a newer primary roof and a recently replaced lower entrance roof. The property is currently leased to Vital Climbing Gym and T-Mobile. The Vital Gym lease, starting November 1, 2025, and running through October 31, 2027, includes 2% annual rent escalations and two five-year renewal options. T-Mobile has maintained a presence at this site since 2000, with the current lease expiring July 31, 2028, and active renewal negotiations are in progress. The property is surrounded by new developments and zoning changes designed to maximize density and property values.
Key Highlights
- Immediate Yield Enhancement: Opportunity to finalize favorable terms with T‑Mobile and achieve a 5.1% stabilized Cap Rate.
- Mission‑Critical Infrastructure: T‑Mobile has been at this location since 2000, with high renewal probability.
- Strategic Location: Prime 'Main Strip' position on South Coast Highway, near the Pacific Ocean.
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
$130,740
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
3.05%
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%
$2,614,800
$2.6M
Cap Rate 7%
$1,867,714
$1.9M
Cap Rate 9%
$1,452,667
$1.5M
Market Conditions
NOI Build-Up for 8,550 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
$214.4K $25.08/SF
− Vacancy
−$27.7K −$3.24/SF
EGI
$186.8K $21.84/SF
− OpEx
−$56.0K −$6.55/SF
NOI
$130.7K $15.29/SF
Area
Oceanside, CA
Vacancy
12.90%
Lease Rate
$25.08 /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%
$2,614,800
Cap Rate 7%
$1,867,714
Cap Rate 9%
$1,452,667
Alternative Uses
Best Use
Retail
$1.87M
$1.63M – $2.18M
NOI $130,740 @ 7.0% cap · market cap 3.05%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.86M
$2.50M – $3.34M
NOI $200,177 @ 7.0% cap · market cap 4.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
2,090
Businesses Nearby
Explore this area
Business Placement
Demographics for 92054, CA
38,667
Population
18,113
Households
2.1
Avg Household Size
38
Median Age
36%
College-Educated
86%
High-School Grad
7.5 sq mi
ZIP Area
5,156
Density / Sq Mi
$76,974
Median Household Income
$38,716
Median Earnings
$1,847
Median Rent
$851,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Retail property - Prime Oceanside location with strong tenants and income potential.
Where is this retail property located?
The property is located at 525 S Coast Hwy 101 Oceanside, CA.
What is the asking price?
The asking price for this property is $4,290,000.
What are key features of this property?
This property features: Immediate Yield Enhancement: Opportunity to finalize favorable terms with T‑Mobile and achieve a 5.1% stabilized Cap Rate.; Mission‑Critical Infrastructure: T‑Mobile has been at this location since 2000, with high renewal probability.; Strategic Location: Prime 'Main Strip' position on South Coast Highway, near the Pacific Ocean.
