Anchored Shopping
For Sale
Contact for pricing
778 1st Street, Gilroy, CA 95020
C-2-zoned retail center with six tenants and NNN lease structures.
Property Size16,500 SF
Price / SF$821.03
Days on Market13
Property Features for 778 1st Street
General Information
Standard status
Active
Size
16,500 SF
Class
B
Total Parking Spaces
84
Property subtype
Retail
Zoning
C-2
Occupancy
100%
Lease Type
NNN
Additional Details
Anchor Co-Tenants
Starbucks, U.S. Bank, Western Dental
Building Details
Year Built
2008
Year Renovated
2023
Buildings
2
Stories
1
Units
2
Tenancy
Multi
Listing Agency:
CBRE - Orange County
(949) 725-8625
Listed By:
Jay Gomez · License #CA 01364065
Source:
Crexi
Added: Aug 18
Changed: Aug 29
Last Checked: Aug 29 at 5:22PM
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 CBRE - Orange County
Investment Insights
Based on property information with market context.
This 16,500-square-foot shopping center was built in 2008 and is zoned C-2. The tenant lineup includes Starbucks, U.S. Bank, and Western Dental, along with three additional tenants, for six occupied spaces in total. NNN lease structures are in place across the tenancy.
The property fronts Gilroy’s primary retail corridor, providing exposure within an established commercial setting. The center is offered either as an individual acquisition or together with the related offering, as applicable.
The property fronts Gilroy’s primary retail corridor, providing exposure within an established commercial setting. The center is offered either as an individual acquisition or together with the related offering, as applicable.
Key Highlights
- Starbucks, U.S. Bank, and Western Dental anchor the center
- Six tenants occupy the 16,500‑square‑foot shopping center
- NNN lease structures in place
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
$445,690
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
3.29%
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%
$8,913,800
$8.9M
Cap Rate 7%
$6,367,000
$6.4M
Cap Rate 9%
$4,952,111
$5.0M
Market Conditions
NOI Build-Up for 16,500 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
$667.3K $40.44/SF
− Vacancy
−$30.6K −$1.85/SF
EGI
$636.7K $38.59/SF
− OpEx
−$191.0K −$11.58/SF
NOI
$445.7K $27.01/SF
Area
Santa Clara County, CA
Vacancy
4.58%
Lease Rate
$40.44 /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%
$8,913,800
Cap Rate 7%
$6,367,000
Cap Rate 9%
$4,952,111
Alternative Uses
Best Use
Retail
$6.37M
$5.57M – $7.43M
NOI $445,690 @ 7.0% cap · market cap 3.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$9.96M
$8.72M – $11.62M
NOI $697,291 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,111
Businesses Nearby
318k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 38%
Dining 31%
Shops & Services 25%
Apparel 6%
Safeway
Groceries
55,522 visits/mo
0.2 miles
Nob Hill Foods
Groceries
34,717 visits/mo
0.1 miles
Cardenas Market
Groceries
29,877 visits/mo
0.2 miles
McDonald's
Dining
26,225 visits/mo
0.1 miles
Dollar Tree
Shops & Services
16,689 visits/mo
0.5 miles
Demographics for 95020, CA
68,090
Population
20,679
Households
3.3
Avg Household Size
37
Median Age
28%
College-Educated
83%
High-School Grad
151.8 sq mi
ZIP Area
449
Density / Sq Mi
$134,242
Median Household Income
$50,421
Median Earnings
$2,256
Median Rent
$1,005,600
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Hecker Pass Plaza — 1st St, Gilroy, CA 95020
- Westwood Shopping Center — CA-152, Gilroy, CA 95020
- Coinstar Kiosk | Bitcoin ATM — 777 1st St, Gilroy, CA 95020
- Town Plaza Shopping Center — 703 1st St, Gilroy, CA 95020
- Gavilan Plaza — 611 1st St, Gilroy, CA 95020
Frequently Asked Questions
What type of property is this?
Shopping center - C-2-zoned retail center with six tenants and NNN lease structures.
Where is this shopping center located?
The property is located at 778 1st Street Gilroy, CA.
What is the asking price?
The asking price for this property is $13,547,000.
What are key features of this property?
This property features: Starbucks, U.S. Bank, and Western Dental anchor the center; Six tenants occupy the 16,500‑square‑foot shopping center; NNN lease structures in place
