Mixed-Use Income Property with New
For Sale
$3,100,000
Pending
80 Porter Drive A, Watsonville, CA 95076
Income-producing mixed-use building with residential units above long-term commercial tenants and a new 30-year roof.
Property Size11,867 SF
Days on Market252
Property Features for 80 Porter Drive A
General Information
Standard status
Pending
Size
11,867 SF
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$2,131
Building Details
Year Built
1945
Listing Agency:
Coldwell Banker Realty
(831) 247-3007
Listed By:
Paul Zech · License #01965059
(831) 247-3007
Source:
Exitrealty
Added: Dec 2, 2025
Changed: Aug 8
Last Checked: Jul 23 at 6:48AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This mixed-use property includes 10 rental income units with residential tenants located on the 2nd floor above a Stereo Electronics store. The residential mix includes one studio unit and two individual room rentals. The commercial portion is occupied by long-term tenants on month-to-month agreements, including a restaurant, auto repair, auto bodyshop, market, hair salon, and battery sales. The owner notes the square footage figures come from tax assessor or property manager records and are not guaranteed to be exact.
The property is known as 70 Porter Dr and 80A Porter Dr, with APN 117-332-015 and APN 117-332-014. Improvements referenced by the seller include a new 30-year roof completed in June 2022 with a 10-year warranty. The seller also reports new electrical completed in 2015 and new plumbing in the residential units in 2020. Utility service includes three water meters (with one not in use) and seven electrical meters.
For buyers or operators seeking a mixed-use income profile, the building combines multiple commercial tenants with residential units in a single ownership opportunity. The seller indicates a pro forma showing strong rent potential based on current market rental rates, and will consider some seller financing as part of the transaction.
The property is known as 70 Porter Dr and 80A Porter Dr, with APN 117-332-015 and APN 117-332-014. Improvements referenced by the seller include a new 30-year roof completed in June 2022 with a 10-year warranty. The seller also reports new electrical completed in 2015 and new plumbing in the residential units in 2020. Utility service includes three water meters (with one not in use) and seven electrical meters.
For buyers or operators seeking a mixed-use income profile, the building combines multiple commercial tenants with residential units in a single ownership opportunity. The seller indicates a pro forma showing strong rent potential based on current market rental rates, and will consider some seller financing as part of the transaction.
Key Highlights
- Mixed‑use income property: 10 rental income units with residential tenants on the 2nd floor above Stereo Electronics store
- Residential mix includes 1 studio unit plus 2 individual room rentals; other long‑term tenants include restaurant, auto repair, auto body shop, market, hair salon, and battery sales
- All commercial tenants are on long‑term month‑to‑month agreements
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
$237,494
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
7.66%
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%
$4,749,880
$4.7M
Cap Rate 7%
$3,392,771
$3.4M
Cap Rate 9%
$2,638,822
$2.6M
Market Conditions
NOI Build-Up for 11,867 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
$356.0K $30.00/SF
− Vacancy
−$16.7K −$1.41/SF
EGI
$339.3K $28.59/SF
− OpEx
−$101.8K −$8.58/SF
NOI
$237.5K $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%
$4,749,880
Cap Rate 7%
$3,392,771
Cap Rate 9%
$2,638,822
Alternative Uses
Best Use
Retail
$6.79M
$5.94M – $7.92M
NOI $474,989 @ 7.0% cap · market cap 15.32%
Second Best
Apartment 5plus
$4.36M
$3.82M – $5.09M
NOI $305,457 @ 7.0% cap · market cap 9.85%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
651
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 Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Income-producing mixed-use building with residential units above long-term commercial tenants and a new 30-year roof.
Where is this apartment building located?
The property is located at 80 Porter Drive A Watsonville, CA.
What is the asking price?
The asking price for this property is $3,100,000.
What are key features of this property?
This property features: Mixed‑use income property: 10 rental income units with residential tenants on the 2nd floor above Stereo Electronics store; Residential mix includes 1 studio unit plus 2 individual room rentals; other long‑term tenants include restaurant, auto repair, auto body shop, market, hair salon, and battery sales; All commercial tenants are on long‑term month‑to‑month agreements
