Renovated Restaurant with
For Sale
$750,000
8501 El Camino Real, Atascadero, CA 93422
Updated restaurant building with indoor dining, private patio, commercial kitchen, and two restrooms.
Property Size1,700 SF
Price / SF$441.18
Days on Market38
Property Features for 8501 El Camino Real
General Information
Standard status
Active
Size
1,700 SF
Restaurant
Commercial Hood
Yes
Patio
Yes
Building Details
Year Built
1918
Year Renovated
2023
Buildings
1
Listing Agency:
NextHome Central Coast
(805) 456-3600
Listed By:
CJ Hegney · License #02203414,PersonLicenseNumber
Source:
Myfabuloushome
Added: Jul 24
Changed: Aug 30
Last Checked: Aug 25 at 5:13AM
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 NextHome Central Coast
Investment Insights
Based on property information with market context.
Located at 8501 El Camino Real in Atascadero, this 1,775-square-foot restaurant property combines indoor dining, a commercial kitchen, and private outdoor seating. The dining room accommodates approximately 30 guests, while the rear patio provides space for an additional 26 seats and includes ADA access.
Major building systems were upgraded in 2017, including electrical, plumbing, HVAC, and ADA-compliant restroom improvements. Further work completed in 2023 added a new roof, gas line, commercial kitchen hood, and fire suppression system. The building has two restrooms and a kitchen configured to support large-scale appliances.
The property is positioned on Atascadero’s main street and is surrounded by breweries, wineries, and restaurants within San Luis Obispo County’s food and beverage corridor.
Major building systems were upgraded in 2017, including electrical, plumbing, HVAC, and ADA-compliant restroom improvements. Further work completed in 2023 added a new roof, gas line, commercial kitchen hood, and fire suppression system. The building has two restrooms and a kitchen configured to support large-scale appliances.
The property is positioned on Atascadero’s main street and is surrounded by breweries, wineries, and restaurants within San Luis Obispo County’s food and beverage corridor.
Key Highlights
- 1,775 SF restaurant building with indoor and outdoor dining areas
- Indoor seating for approximately 30 guests
- Private rear patio with 26 additional seats and ADA access
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
$24,325
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
3.24%
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%
$486,500
$486.5K
Cap Rate 7%
$347,500
$347.5K
Cap Rate 9%
$270,278
$270.3K
Market Conditions
NOI Build-Up for 1,700 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
$34.1K $20.04/SF
− Vacancy
−$1.6K −$0.96/SF
EGI
$32.4K $19.08/SF
− OpEx
−$8.1K −$4.77/SF
NOI
$24.3K $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%
$486,500
Cap Rate 7%
$347,500
Cap Rate 9%
$270,278
Alternative Uses
Best Use
Specialty Retail
$347.5K
$304.1K – $405.4K
NOI $24,325 @ 7.0% cap · market cap 3.24%
Second Best
Industrial
$246.6K
$215.8K – $287.7K
NOI $17,261 @ 7.0% cap · market cap 2.30%
Theoretical Best
Healthcare Medical
$668.6K
$585.0K – $780.0K
NOI $46,801 @ 7.0% cap · market cap 6.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
582
Businesses Nearby
135k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 35%
Dining 34%
Shops & Services 14%
Home Improvements & Furnishings 10%
Food 4 Less
Groceries
25,638 visits/mo
0.2 miles
Smart & Final
Groceries
21,843 visits/mo
0.3 miles
Starbucks
Dining
16,452 visits/mo
0.3 miles
Miner's Ace Hardware
Home Improvements & Furnishings
13,613 visits/mo
0.4 miles
Jack in the Box
Dining
9,389 visits/mo
0.3 miles
Demographics for 93422, CA
33,041
Population
13,702
Households
2.4
Avg Household Size
42
Median Age
31%
College-Educated
93%
High-School Grad
68.8 sq mi
ZIP Area
480
Density / Sq Mi
$89,916
Median Household Income
$46,939
Median Earnings
$1,841
Median Rent
$692,100
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 - Updated restaurant building with indoor dining, private patio, commercial kitchen, and two restrooms.
Where is this conventional restaurant located?
The property is located at 8501 El Camino Real Atascadero, CA.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 1,775 SF restaurant building with indoor and outdoor dining areas; Indoor seating for approximately 30 guests; Private rear patio with 26 additional seats and ADA access
