Cape Coral Mixed-Use
For Sale
$2,970,000
862 Lafayette St, Cape Coral, FL 33904
Two-story, 17,500+ sq ft building in downtown Cape Coral.
Property Size17,564 SF
Price / SF$169.10
Days on Market426
Property Features for 862 Lafayette St
General Information
Standard status
Active
Size
17,564 SF
Taxes and HOA fees
Annual Taxes
$22,133
Listing Agency:
Cornerstone Coastal Properties
(239) 202-1801
Listed By:
Daryl Simms · License #258026217
(239) 202-1801
Source:
Exprealty
Added: Jun 30, 2025
Changed: Aug 27
Last Checked: Aug 28 at 12:49PM
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 Cornerstone Coastal Properties
Investment Insights
Based on property information with market context.
Located in downtown Cape Coral, this two-story building offers over 17,500 square feet of space. Previously operated as Paesano's for over 30 years, the property is situated within the South Cape Zoning District, the C.R.A, and The South Cape Hospitality & Entertainment Area. The listing includes 862 Lafayette St., which comprises the building and some parking, as well as 859 Miramar St. for additional off-street entrance and parking from the south. The property is located one block south of Cape Coral Parkway and one block east of Coronado Parkway. It features six walk-in coolers, three walk-in freezers, two commercial kitchens, a butcher room, and phase-3 power. A great deal of FFE are on premise for consideration of sale. Multiple restrooms are available. The second-floor office includes a small balcony overlooking the main shopping area floor, which has a soaring ceiling. The patio seating area includes one of the kitchens equipped with pizza ovens, gas stoves, fryers, and more. This large screened area also features power shutters. The location is near new apartment complexes, including "The Cove On 47th" on Cape Coral Parkway with 327 units and "Madison Square" on Miramar with 82 units.
Key Highlights
- Prime Downtown Cape Coral location in a vibrant district.
- Over 17,500 sq ft, two‑story building with additional off‑street entrance and parking.
- Equipped with 6 walk‑in coolers, 3 walk‑in freezers, 2 commercial kitchens, a butcher room, and phase‑3 power.
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
$264,864
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
8.92%
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%
$5,297,280
$5.3M
Cap Rate 7%
$3,783,771
$3.8M
Cap Rate 9%
$2,942,933
$2.9M
Market Conditions
NOI Build-Up for 17,564 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
$385.7K $21.96/SF
− Vacancy
−$7.3K −$0.42/SF
EGI
$378.4K $21.54/SF
− OpEx
−$113.5K −$6.46/SF
NOI
$264.9K $15.08/SF
Area
Cape Coral, FL
Vacancy
1.90%
Lease Rate
$21.96 /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%
$5,297,280
Cap Rate 7%
$3,783,771
Cap Rate 9%
$2,942,933
Alternative Uses
Best Use
Retail
$3.78M
$3.31M – $4.41M
NOI $264,864 @ 7.0% cap · market cap 8.92%
Second Best
Mixed Use
$3.10M
$2.71M – $3.61M
NOI $216,696 @ 7.0% cap · market cap 7.30%
Theoretical Best
Office A
$4.56M
$3.99M – $5.32M
NOI $319,018 @ 7.0% cap · market cap 10.74%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,280
Businesses Nearby
203k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 43%
Dining 30%
Groceries 14%
Home Improvements & Furnishings 8%
Winn-Dixie
Groceries
28,327 visits/mo
0.3 miles
McDonald's
Dining
18,781 visits/mo
0.4 miles
7-Eleven
Shops & Services
18,620 visits/mo
0.4 miles
Starbucks
Dining
16,098 visits/mo
0.1 miles
Vision Ace Hardware
Home Improvements & Furnishings
14,318 visits/mo
0.2 miles
Demographics for 33904, FL
32,029
Population
20,401
Households
1.6
Avg Household Size
56
Median Age
29%
College-Educated
95%
High-School Grad
9.7 sq mi
ZIP Area
3,302
Density / Sq Mi
$66,933
Median Household Income
$43,829
Median Earnings
$1,665
Median Rent
$347,100
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-story, 17,500+ sq ft building in downtown Cape Coral.
Where is this mixed-use property located?
The property is located at 862 Lafayette St Cape Coral, FL.
What is the asking price?
The asking price for this property is $2,970,000.
What are key features of this property?
This property features: Prime Downtown Cape Coral location in a vibrant district.; Over 17,500 sq ft, two‑story building with additional off‑street entrance and parking.; Equipped with **6 walk‑in coolers, 3 walk‑in freezers, 2 commercial kitchens**, a butcher room, and phase‑3 power.
