Remodeled Mixed-Use Property Near
For Sale
Contact for pricing
Pending
851 41st Ave, Santa Cruz, CA 95062
Completely remodeled mixed-use property with retail and residential units.
Property Size4,731 SF
Days on Market197
Property Features for 851 41st Ave
General Information
Standard status
Pending
Size
4,731 SF
Class
A
Property subtype
Mixed Use
Zoning
C-2
Occupancy
100%
Lease Type
NNN
Investment Type
Stabilized
Net Operating Income
$217,000
Building Details
Year Built
1963
Year Renovated
2016
Buildings
1
Stories
2
Units
5
Tenancy
Multi
Listing Agency:
SBA Commercial
(831) 464-5039
Listed By:
Erik Barbic · License #CA 01736370
Source:
Crexi
Added: Jan 27
Changed: Aug 8
Last Checked: Aug 10 at 1:26PM
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 SBA Commercial
Investment Insights
Based on property information with market context.
Located a short distance from the California coastline, this mixed-use property at 851 41st Ave has been completely remodeled with an innovative design. The top-to-bottom renovation was completed in 2016. The property was designed in conjunction with Fuse Architecture. The property, zoned C-2, consists of two parcels. The property includes retail space and three residential apartments on the second floor. Zameen at the Point has extended their lease for an additional 10 years. Parlour Salon moved into the building in 2017 and is committed until the end of 2032. There are 16 on-site parking spaces available for both the retail tenants and apartment residents. The property size is 4731 square feet.
Key Highlights
- Prime location just blocks from the California coastline.
- Significant income potential from established commercial tenants (Zameen at the Point with lease extended to 2032, and Parlour Salon committed until 2032) and three residential apartments.
- Completely remodeled in 2016 with innovative design by Fuse Architecture.
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
$189,363
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
4.30%
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%
$3,787,260
$3.8M
Cap Rate 7%
$2,705,186
$2.7M
Cap Rate 9%
$2,104,033
$2.1M
Market Conditions
NOI Build-Up for 4,731 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
$283.9K $60.00/SF
− Vacancy
−$13.3K −$2.82/SF
EGI
$270.5K $57.18/SF
− OpEx
−$81.2K −$17.15/SF
NOI
$189.4K $40.03/SF
Area
Santa Cruz County, CA
Vacancy
4.70%
Lease Rate
$60.00 /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%
$3,787,260
Cap Rate 7%
$2,705,186
Cap Rate 9%
$2,104,033
Alternative Uses
Best Use
Retail
$2.71M
$2.37M – $3.16M
NOI $189,363 @ 7.0% cap · market cap 4.30%
Second Best
Mixed Use
$2.42M
$2.11M – $2.82M
NOI $169,074 @ 7.0% cap · market cap 3.84%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
959
Businesses Nearby
34k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 58%
Dining 34%
Hotels & Casinos 8%
O'Reilly Auto Parts
Shops & Services
10,863 visits/mo
0.5 miles
Erik's DeliCafe
Dining
9,755 visits/mo
0.5 miles
7-Eleven
Shops & Services
8,044 visits/mo
0.4 miles
Best Western Plus Capitola By-The-Sea Inn & Suites
Hotels & Casinos
2,863 visits/mo
0.5 miles
Mountain Mike's Pizza
Dining
1,735 visits/mo
0.1 miles
Demographics for 95062, CA
36,268
Population
17,055
Households
2.1
Avg Household Size
43
Median Age
51%
College-Educated
93%
High-School Grad
5.1 sq mi
ZIP Area
7,111
Density / Sq Mi
$108,261
Median Household Income
$54,059
Median Earnings
$2,291
Median Rent
$1,064,600
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.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Completely remodeled mixed-use property with retail and residential units.
Where is this mixed-use property located?
The property is located at 851 41st Ave Santa Cruz, CA.
What is the asking price?
The asking price for this property is $4,400,000.
What are key features of this property?
This property features: Prime location just blocks from the California coastline.; Significant income potential from established commercial tenants (Zameen at the Point with lease extended to 2032, and Parlour Salon committed until 2032) and three residential apartments.; Completely remodeled in 2016 with innovative design by Fuse Architecture.
