Building Details

Building Size 4,698 SF

Year Built 1984

Stories 2

Units 4

Tenancy Multi

Listed By: Rick Burg Show Phone

Source: Elliman

Added: Sep 12 Last Checked: Sep 13 at 6:01AM

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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 Rick Burg

Investment Insights

Based on property information with market context.

Built in 1984, this mixed-use property combines three commercial spaces with an upstairs residential apartment. The commercial suites are occupied by the United States Postal Service, The Dog House restaurant, and Captain Davey's Espresso & Ice Cream. The apartment is scheduled to be delivered vacant at closing, while the commercial spaces remain leased to established occupants.

The property is located at 537 Highway 1 in Bodega Bay, with panoramic views extending across Bodega Bay, Bodega Head, and the Doran Peninsula. On-site and street parking serve the commercial uses and visitors. Tenant operating histories include The Dog House since 1986, the post office since 1991, and Captain Davey's at the property since 2008.

Key Highlights

• Three leased commercial spaces with the United States Postal Service, The Dog House, and Captain Davey's Espresso & Ice Cream
• Upstairs residential apartment to be delivered vacant at closing
• Panoramic views of Bodega Bay, Bodega Head, and the Doran Peninsula

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

$89,114

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

4.69%

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%

$1,782,280 $1.8M

Cap Rate 7%

$1,273,057 $1.3M

Cap Rate 9%

$990,156 $990.2K

Market Conditions

NOI Build-Up for 4,698 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

$124.0K $26.40/SF

− Vacancy

−$5.2K −$1.11/SF

EGI

$118.8K $25.29/SF

− OpEx

−$29.7K −$6.32/SF

NOI

$89.1K $18.97/SF

Area

Sonoma County, CA

Vacancy

4.20%

Lease Rate

$26.40 /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%

$1,782,280

Cap Rate 7%

$1,273,057

Cap Rate 9%

$990,156

Alternative Uses

Best Use

Specialty Retail

$1.27M

$1.11M – $1.49M (±1% cap)

NOI $89,114 @ 7.0% cap · market cap 4.69%

Second Best

Mixed Use

$885.9K

$775.2K – $1.03M (±1% cap)

NOI $62,014 @ 7.0% cap · market cap 3.26%

Theoretical Best

—

—

same as Best Use

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Storefront properties

Suggested Use

Top Pick Electrical Service Bakery Auto Repair Shop Cafe & Coffee Shop Furniture & Home Goods Grocery & Convenience Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Multi-tenant

Tenancy

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

81

Businesses Nearby

Explore this area Business Placement

Demographics for 94923, CA

1,287

Population

1,353

Households

1

Avg Household Size

61

Median Age

44%

College-Educated

89%

High-School Grad

19.3 sq mi

ZIP Area

67

Density / Sq Mi

$41,969

Median Earnings

$1,540

Median Rent

$1,177,900

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Mixed-use property - Three leased commercial suites and a vacant apartment at closing support a varied mixed-use configuration.

Where is this mixed-use property located?

The property is located at 537 Highway 1 Bodega Bay, CA.

What is the asking price?

The asking price for this property is $1,900,000.

What are key features of this property?

This property features: Three leased commercial spaces with the United States Postal Service, The Dog House, and Captain Davey's Espresso & Ice Cream; Upstairs residential apartment to be delivered vacant at closing; Panoramic views of Bodega Bay, Bodega Head, and the Doran Peninsula