Brewery and
For Sale
$2,250,000
625 Main ST, Watsonville, CA 95076
Production infrastructure and a commercial bar support on-site beverage operations.
Property Size6,874 SF
Days on Market158
Property Features for 625 Main ST
General Information
Standard status
Active
Size
6,874 SF
Property subtype
CommercialProperty
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Building Size
6,874 SF
Year Built
1925
Listing Agency:
KW Thrive Santa Cruz
(831) 818-1069
Listed By:
Charles Allen · License #00357826
(831) 818-1069
Source:
Desantisrealty
Added: Mar 26
Changed: Aug 29
Last Checked: Aug 29 at 6:15PM
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 KW Thrive Santa Cruz
Investment Insights
Based on property information with market context.
This brewery property combines a dedicated production area, a finished taproom, and a commercial bar within a hospitality-oriented facility. The operation includes 10 bbl production capacity, extensive tenant improvements, furnishings, and infrastructure suited to craft beverage production and customer service. Built in 1925, the property has been substantially upgraded for its current use.
The building fronts Main Street in downtown Watsonville, placing the facility along a primary commercial corridor. Highway 1 and Highway 152 provide regional access, with Santa Cruz and Monterey markets located nearby. The existing combination of production, service, and gathering areas creates an established framework for a brewery or beverage production operation.
The building fronts Main Street in downtown Watsonville, placing the facility along a primary commercial corridor. Highway 1 and Highway 152 provide regional access, with Santa Cruz and Monterey markets located nearby. The existing combination of production, service, and gathering areas creates an established framework for a brewery or beverage production operation.
Key Highlights
- 10 bbl brewery production capacity
- Dedicated brewery production area with finished taproom
- Commercial bar and extensive tenant improvements
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
$137,569
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
6.11%
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%
$2,751,380
$2.8M
Cap Rate 7%
$1,965,271
$2.0M
Cap Rate 9%
$1,528,544
$1.5M
Market Conditions
NOI Build-Up for 6,874 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
$206.2K $30.00/SF
− Vacancy
−$9.7K −$1.41/SF
EGI
$196.5K $28.59/SF
− OpEx
−$59.0K −$8.58/SF
NOI
$137.6K $20.01/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$30.00 /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%
$2,751,380
Cap Rate 7%
$1,965,271
Cap Rate 9%
$1,528,544
Alternative Uses
Best Use
Specialty Retail
$3.79M
$3.32M – $4.42M
NOI $265,312 @ 7.0% cap · market cap 11.79%
Second Best
Industrial
$1.97M
$1.72M – $2.29M
NOI $137,569 @ 7.0% cap · market cap 6.11%
Theoretical Best
Retail
$3.93M
$3.44M – $4.59M
NOI $275,139 @ 7.0% cap · market cap 12.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,699
Businesses Nearby
Explore this area
Business Placement
Demographics for 95076, CA
84,433
Population
26,488
Households
3.2
Avg Household Size
35
Median Age
19%
College-Educated
72%
High-School Grad
135.1 sq mi
ZIP Area
625
Density / Sq Mi
$86,685
Median Household Income
$36,077
Median Earnings
$1,851
Median Rent
$767,200
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Brewery - Production infrastructure and a commercial bar support on-site beverage operations.
Where is this brewery located?
The property is located at 625 Main ST Watsonville, CA.
What is the asking price?
The asking price for this property is $2,250,000.
What are key features of this property?
This property features: 10 bbl brewery production capacity; Dedicated brewery production area with finished taproom; Commercial bar and extensive tenant improvements
