Turn-Key Brewery and Taproom
For Sale
$2,250,000
625 Main Street, Watsonville, CA 95076
Turn-key brewery, taproom, and beverage facility in downtown Watsonville.
Property Size6,874 SF
Price / SF$327.32
Days on Market123
Property Features for 625 Main Street
General Information
Standard status
Active
Size
6,874 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$16,654
Building Details
Year Built
1925
Listing Agency:
KW Thrive Santa Cruz
(831) 818-1069
Listed By:
Charles Allen · License #00357826
(831) 818-1069
Source:
Exitrealty
Added: Apr 24
Changed: Aug 23
Last Checked: Aug 23 at 6:20AM
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.
The property at 625 Main Street offers the opportunity to acquire or lease a brewery, taproom, and beverage facility in downtown Watsonville. Originally constructed in 1925, the property has undergone approximately $4 million in capital improvements. It has been transformed into a hospitality and production venue suitable for craft beverage operations and community gathering. The facility includes a brewery production area and a taproom with a 10 barrel (bbl) production capacity. The property features a commercial bar and tenant improvements, creating a turnkey environment for an operator to launch or expand a beverage concept. Situated along Main Street, a primary commercial corridor in Watsonville, the property benefits from visibility and convenient access to Highway 1 and Highway 152, as well as proximity to Santa Cruz and Monterey markets. The improvements, infrastructure, and furnishings create an opportunity for craft brewery or beverage production companies. The location has a bike score of 77, indicating it is very bikeable, a walk score of 53, indicating it is somewhat walkable, and a transit score of 19, indicating minimal transit options.
Key Highlights
- Turn‑key brewery, taproom, and beverage production facility in downtown Watsonville.
- Approximately $4 million in recent capital improvements.
- Professionally designed brewery production area with a 10 bbl system.
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
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 - Turn-key brewery, taproom, and beverage facility in downtown Watsonville.
Where is this brewery located?
The property is located at 625 Main Street 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: Turn‑key brewery, taproom, and beverage production facility in downtown Watsonville.; Approximately $4 million in recent capital improvements.; Professionally designed brewery production area with a 10 bbl system.
