Ocean-View Restaurant and
For Sale
$3,900,000
7432 Exotic Garden Drive, Cambria, CA 93428
Restaurant with commercial kitchen plus a private two-story residence, positioned along Highway 1 with direct coastal views.
Property Size9,802 SF
Lot Size3.05 Acres
Price / SF$397.88
Days on Market347
Property Features for 7432 Exotic Garden Drive
General Information
Standard status
Active
Size
9,802 SF
Lot size
3.05 Acres
Property subtype
Commercial/Industrial
Site & Location
Highway Access
Yes
Road Access
Yes
Listing Agency:
Vineyard Professional Real Estate
(805) 610-6741
Listed By:
Jenny Heinzen · License #01436553
(805) 610-6741
Source:
Exitrealty
Added: Aug 31, 2025
Changed: Aug 8
Last Checked: Aug 12 at 6:40AM
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 Vineyard Professional Real Estate
Investment Insights
Based on property information with market context.
This property combines a 6,662-square-foot restaurant space with a commercial kitchen, a 2,453-square-foot two-story private residence with an attached garage, and a 687-square-foot outbuilding on 3.05 acres of coastal land. The residence is described as offering stunning views, and the additional outbuilding provides versatile space that may support storage or events, depending on how it is developed and used. The listing also references preliminary septic work, along with existing easements.
The site is positioned along Highway 1 in Cambria with high visibility and direct ocean views. It’s presented as part of a high tourism area, and the seller notes potential for parking and rock wall adjustments as part of future planning.
For buyers seeking a hospitality concept, this layout offers an on-site restaurant setup paired with private lodging. The combination of commercial foodservice space, an included residence, and supplementary outbuilding space can support multiple operating models such as fine dining, hospitality use, or a private retreat. Interested parties should verify development and permitting details during due diligence, including any work tied to the referenced septic progress, easements, and site adjustments.
The site is positioned along Highway 1 in Cambria with high visibility and direct ocean views. It’s presented as part of a high tourism area, and the seller notes potential for parking and rock wall adjustments as part of future planning.
For buyers seeking a hospitality concept, this layout offers an on-site restaurant setup paired with private lodging. The combination of commercial foodservice space, an included residence, and supplementary outbuilding space can support multiple operating models such as fine dining, hospitality use, or a private retreat. Interested parties should verify development and permitting details during due diligence, including any work tied to the referenced septic progress, easements, and site adjustments.
Key Highlights
- 3.05‑acre coastal property along Highway 1 in Cambria with direct coastal views
- 6,662 sq. ft. restaurant space with a commercial kitchen
- 2,453 sq. ft. private two‑story residence with attached garage
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
$140,253
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
3.60%
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%
$2,805,060
$2.8M
Cap Rate 7%
$2,003,614
$2.0M
Cap Rate 9%
$1,558,367
$1.6M
Market Conditions
NOI Build-Up for 9,802 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
$196.4K $20.04/SF
− Vacancy
−$9.4K −$0.96/SF
EGI
$187.0K $19.08/SF
− OpEx
−$46.8K −$4.77/SF
NOI
$140.3K $14.31/SF
Area
San Luis Obispo County, CA
Vacancy
4.80%
Lease Rate
$20.04 /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%
$2,805,060
Cap Rate 7%
$2,003,614
Cap Rate 9%
$1,558,367
Alternative Uses
Best Use
Specialty Retail
$2.00M
$1.75M – $2.34M
NOI $140,253 @ 7.0% cap · market cap 3.60%
Second Best
Hotel Hospitality
$1.26M
$1.11M – $1.48M
NOI $88,500 @ 7.0% cap · market cap 2.27%
Theoretical Best
Healthcare Medical
$3.85M
$3.37M – $4.50M
NOI $269,848 @ 7.0% cap · market cap 6.92%
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
36
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93428, CA
5,951
Population
4,199
Households
1.4
Avg Household Size
62
Median Age
44%
College-Educated
93%
High-School Grad
77.3 sq mi
ZIP Area
77
Density / Sq Mi
$89,225
Median Household Income
$34,001
Median Earnings
$1,909
Median Rent
$869,600
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant with commercial kitchen plus a private two-story residence, positioned along Highway 1 with direct coastal views.
Where is this conventional restaurant located?
The property is located at 7432 Exotic Garden Drive Cambria, CA.
What is the asking price?
The asking price for this property is $3,900,000.
What are key features of this property?
This property features: 3.05‑acre coastal property along Highway 1 in Cambria with direct coastal views; 6,662 sq. ft. restaurant space with a commercial kitchen; 2,453 sq. ft. private two‑story residence with attached garage
