Listing Agency: CBRE | San Jose

Listed By: Marie Anderson · License #00919144 Show Phone

Source: Cbre

Added: Mar 25 Changed: Oct 6 Last Checked: Oct 5 at 4:57PM

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Investment Insights

Based on property information with market context.

This is a 7,550 square foot freestanding commercial building situated on a 2.27 acre parcel. It is suitable for retail, commercial, office, showroom, or restaurant use. The property can be sold vacant or as a leased investment with a new ten-year lease with Los Cuates Mexican Restaurant. Furniture, fixtures, and equipment are included. The property benefits from freeway pylon signage and freeway visibility on Highway 101. It is located adjacent to the Gilroy Outlet Center and Johnson RV and features exceptional parking.

Key Highlights

• High visibility freeway pylon signage on Hwy 101
• Large ±2.27 acre parcel with exceptional parking
• 7,550 SF freestanding building** suitable for retail, commercial, office, showroom, or restaurant

Financial Insights

Estimated NOI and Cap Rate

NOI / Yr

$203,937

Cap Rate

5.23%

Suggested Prices Based on Cap Rates

Cap Rate 5%

$4,078,740 $4.1M

Cap Rate 7%

$2,913,386 $2.9M

Cap Rate 9%

$2,265,967 $2.3M

Market Conditions

NOI Build-Up for 7,550 SF

Gross rent

$305.3K $40.44/SF

− Vacancy

−$14.0K −$1.85/SF

EGI

$291.3K $38.59/SF

− OpEx

−$87.4K −$11.58/SF

NOI

$203.9K $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 Rate 5%

$4,078,740

Cap Rate 7%

$2,913,386

Cap Rate 9%

$2,265,967

Alternative Uses

Best Use

Retail

$2.91M

$2.55M – $3.40M (±1% cap)

NOI $203,937 @ 7.0% cap · market cap 5.23%

Second Best

Specialty Retail

$2.01M

$1.76M – $2.34M (±1% cap)

NOI $140,521 @ 7.0% cap · market cap 3.60%

Theoretical Best

Office A

$4.56M

$3.99M – $5.32M (±1% cap)

NOI $319,064 @ 7.0% cap · market cap 8.18%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Los Cuates Mercado Food Market Special Events Gilroy ... Wedding Service Los Cuates Restaurant ... Restaurant

Suggested Use

Top Pick Parking Lot & Garage Dental Office Big Box & Wholesale Store Real Estate Agency Electrical Service Pharmacy

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

966

Businesses Nearby

329k

Monthly Visits Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Apparel 61% Shops & Services 22% Dining 11% Beauty & Spa 5%

Nike Factory Store Apparel

65,403 visits/mo 0.2 miles

Bath & Body Works Beauty & Spa

15,855 visits/mo 0.3 miles

Shoe Palace Apparel

15,389 visits/mo 0.2 miles

Rotten Robbie Shops & Services

14,748 visits/mo 0.4 miles

American Eagle Outfitters Apparel

14,480 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

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - 7,550 SF building on 2.27 acre parcel for sale.

Where is this conventional restaurant located?

The property is located at 7950 Arroyo Circle Gilroy, 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: High visibility freeway pylon signage on Hwy 101; Large ±2.27 acre parcel with exceptional parking; 7,550 SF freestanding building** suitable for retail, commercial, office, showroom, or restaurant