Restaurant Building in Scotts
For Sale
$1,000,000
Pending
6016 Scotts Valley Drive, Scotts Valley, CA 95066
1,830 sq ft restaurant on 16,663 sq ft lot.
Property Size1,830 SF
Lot Size0.38 Acres
Days on Market441
Property Features for 6016 Scotts Valley Drive
General Information
Standard status
Pending
Size
1,830 SF
Lot size
0.38 Acres
Property subtype
Commercial/Industrial
Building Details
Year Built
1973
Listing Agency:
Sherman & Boone Realtors
(831) 464-5050
Listed By:
Nick Torres · License #01719985
(831) 435-9949
Source:
Exitrealty
Added: Jun 27, 2025
Changed: Sep 8
Last Checked: Sep 10 at 8:18AM
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 Sherman & Boone Realtors
Investment Insights
Based on property information with market context.
Located at 6016 Scotts Valley Dr, Scotts Valley, California, this property features an approximately 1,830 sq ft restaurant building on a 16,663 sq ft commercial-zoned lot. Situated along Highway 17, the property, formerly Cafe Carlos, is currently in shell condition. The location offers high visibility from the highway and signage opportunities. Its location near schools, parks, athletic fields, and office buildings provides a consistent flow of potential patrons. This property is suitable for an owner-user or developer.
Key Highlights
- High visibility location on Highway 17.
- Large 16,663 sq ft commercial‑zoned lot.
- Approx. 1,830 sq ft restaurant building.
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
$70,632
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
7.06%
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%
$1,412,640
$1.4M
Cap Rate 7%
$1,009,029
$1.0M
Cap Rate 9%
$784,800
$784.8K
Market Conditions
NOI Build-Up for 1,830 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
$98.8K $54.00/SF
− Vacancy
−$4.6K −$2.54/SF
EGI
$94.2K $51.46/SF
− OpEx
−$23.5K −$12.87/SF
NOI
$70.6K $38.60/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$54.00 /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%
$1,412,640
Cap Rate 7%
$1,009,029
Cap Rate 9%
$784,800
Alternative Uses
Best Use
Specialty Retail
$1.01M
$882.9K – $1.18M
NOI $70,632 @ 7.0% cap · market cap 7.06%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$1.05M
$915.6K – $1.22M
NOI $73,248 @ 7.0% cap · market cap 7.32%
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
695
Businesses Nearby
50k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 52%
Dining 45%
Hotels & Casinos 2%
Shell
Shops & Services
12,565 visits/mo
0.1 miles
Jack in the Box
Dining
9,452 visits/mo
0.1 miles
Starbucks
Dining
7,766 visits/mo
0.2 miles
QuikStop
Shops & Services
5,749 visits/mo
0.4 miles
Carl's Jr.
Dining
5,732 visits/mo
0.1 miles
Demographics for 95066, CA
15,483
Population
6,733
Households
2.3
Avg Household Size
45
Median Age
55%
College-Educated
96%
High-School Grad
18.7 sq mi
ZIP Area
828
Density / Sq Mi
$146,941
Median Household Income
$73,323
Median Earnings
$2,384
Median Rent
$1,113,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Restaurant - 1,830 sq ft restaurant on 16,663 sq ft lot.
Where is this restaurant located?
The property is located at 6016 Scotts Valley Drive Scotts Valley, CA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: High visibility location on Highway 17.; Large 16,663 sq ft commercial‑zoned lot.; Approx. 1,830 sq ft restaurant building.
