4-Bay Auto Repair
For Sale
$2,699,000
7896 Monterey Road, Gilroy, CA 95020
Fully equipped automotive facility with customer waiting space, storage improvements, and established local business goodwill.
Property Size4,270 SF
Price / SF$632.08
Days on Market10
Property Features for 7896 Monterey Road
General Information
Standard status
Active
Size
4,270 SF
Property subtype
General Commercial
Additional Details
Business Included
Yes
Service Bays
4
Taxes and HOA fees
Annual Taxes
$1,400
Amenities
customer waiting area
laundry room
outdoor shed
secure tool storage
2 Parking Spaces.
Building Details
Year Built
1948
Listing Agency:
(916) 470-7777
Listed By:
Red Dog Real Estate
Source:
Xome
Added: Aug 21
Changed: Aug 29
Last Checked: Aug 29 at 2:12PM
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 Red Dog Real Estate
Investment Insights
Based on property information with market context.
This auto repair property at 7896 Monterey Road includes four service bays with professional lifts, a dedicated customer waiting area, laundry room, outdoor shed, and secure tool storage. The facility is fully equipped for automotive repair operations and includes two parking spaces. Built in 1948, the property has supported more than 30 years of business goodwill and an established local customer base.
The site is in Gilroy and offers road frontage, high road visibility, and exposure to heavy daily traffic. These features support business identification and customer access along Monterey Road. The existing improvements combine service areas with customer, storage, and operational spaces in a functioning automotive facility.
The site is in Gilroy and offers road frontage, high road visibility, and exposure to heavy daily traffic. These features support business identification and customer access along Monterey Road. The existing improvements combine service areas with customer, storage, and operational spaces in a functioning automotive facility.
Key Highlights
- Four‑bay auto repair facility with professional lifts
- 7896 Monterey Road, Gilroy, CA 95020
- More than 30 years of business goodwill and established local customer base
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
$115,339
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
4.27%
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%
$2,306,780
$2.3M
Cap Rate 7%
$1,647,700
$1.6M
Cap Rate 9%
$1,281,544
$1.3M
Market Conditions
NOI Build-Up for 4,270 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
$172.7K $40.44/SF
− Vacancy
−$7.9K −$1.85/SF
EGI
$164.8K $38.59/SF
− OpEx
−$49.4K −$11.58/SF
NOI
$115.3K $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%
$2,306,780
Cap Rate 7%
$1,647,700
Cap Rate 9%
$1,281,544
Alternative Uses
Best Use
Retail
$1.65M
$1.44M – $1.92M
NOI $115,339 @ 7.0% cap · market cap 4.27%
Second Best
Industrial
$1.02M
$890.9K – $1.19M
NOI $71,271 @ 7.0% cap · market cap 2.64%
Theoretical Best
Office A
$2.58M
$2.26M – $3.01M
NOI $180,451 @ 7.0% cap · market cap 6.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Service bays
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,575
Businesses Nearby
127k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 66%
Dining 33%
Hotels & Casinos 1%
Home Improvements & Furnishings 1%
Rotten Robbie
Shops & Services
14,748 visits/mo
0.5 miles
Arco AM/PM
Shops & Services
14,016 visits/mo
0.5 miles
Black Bear Diner
Dining
13,433 visits/mo
0.5 miles
Burger King
Dining
13,254 visits/mo
0.5 miles
Jack in the Box
Dining
12,407 visits/mo
0.1 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
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- Slabsides — 230 Old Gilroy St, Gilroy, CA 95020
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Frequently Asked Questions
What type of property is this?
Auto shop - Fully equipped automotive facility with customer waiting space, storage improvements, and established local business goodwill.
Where is this auto shop located?
The property is located at 7896 Monterey Road Gilroy, CA.
What is the asking price?
The asking price for this property is $2,699,000.
What are key features of this property?
This property features: Four‑bay auto repair facility with professional lifts; 7896 Monterey Road, Gilroy, CA 95020; More than 30 years of business goodwill and established local customer base
