Four-Unit Mixed-Use
For Sale
Under Contract
$1,500,000
883 Lighthouse AVE, Monterey, CA 93940
Residential Income (2-4 units), MONTEREY, CA
Property Size2,633 SF
Lot Size0.11 Acres
Price / SF$569.69
Days on Market40
Property Features for 883 Lighthouse AVE
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Zoning
Comm
Bedrooms
3
Rooms
Bedroom 2, Bedroom 1, Bedroom 3
Parking
4
Parking features
On Street, Off Street
Appliances
Cooktop - Gas, Countertop - Tile, Varies by Unit
Lot features
Grade - Level
Subdivision
Cannery Row/Lighthouse Business District
Standard status
Active Under Contract
Size
2,633 SF
Lot size
0.11 Acres
Utilities
Heating system
Wall Furnace
Water source
Private
Building Details
Year built
1966
Number of units
2
Flooring type
Linoleum, Laminate, Tile
Roof type
Composition, Fiberglass
Listing Agency:
KW Coastal Estates · Keller Williams Realty
(831) 622-6200
Listed By:
Monterey Peninsula Home Team · License #70000352
(831) 594-3290
Added: Jul 18
Changed: Aug 26
Last Checked: Aug 26 at 8:06PM
MLS# ML82032663
Copyright © 2026 MLS Listings, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 2,633-square-foot mixed-use property contains four units across commercial and residential components. Two commercial spaces face Lighthouse Avenue, while the residential portion includes a 2BD/1BA apartment positioned above the commercial units and a detached 1BD/1BA apartment at the rear. The upper apartment includes a deck, and parking is available both off street and on street.
Built in 1966, the property sits on a 0.1102-acre lot and carries Comm zoning. Interior features include tile, linoleum, and laminate flooring, with wall-furnace heating. The property is located in Monterey near the Monterey Bay Aquarium, Cannery Row, and the waterfront, each described as just blocks away.
Built in 1966, the property sits on a 0.1102-acre lot and carries Comm zoning. Interior features include tile, linoleum, and laminate flooring, with wall-furnace heating. The property is located in Monterey near the Monterey Bay Aquarium, Cannery Row, and the waterfront, each described as just blocks away.
Key Highlights
- Four‑unit configuration with two commercial units and two residential apartments
- 2,633 square feet on a 0.1102‑acre lot
- Two commercial units face Lighthouse Avenue
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
$42,358
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
2.82%
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%
$847,160
$847.2K
Cap Rate 7%
$605,114
$605.1K
Cap Rate 9%
$470,644
$470.6K
Market Conditions
NOI Build-Up for 2,633 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
$79.0K $30.00/SF
− Vacancy
−$2.0K −$0.75/SF
EGI
$77.0K $29.25/SF
− OpEx
−$34.7K −$13.16/SF
NOI
$42.4K $16.09/SF
Area
Monterey County, CA
Vacancy
2.50%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
45.00%
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%
$847,160
Cap Rate 7%
$605,114
Cap Rate 9%
$470,644
Alternative Uses
Best Use
Apartment 5plus
$605.1K
$529.5K – $706.0K
NOI $42,358 @ 7.0% cap · market cap 2.82%
Second Best
Retail
$544.8K
$476.7K – $635.7K
NOI $38,139 @ 7.0% cap · market cap 2.54%
Theoretical Best
Specialty Retail
$1.01M
$879.7K – $1.17M
NOI $70,375 @ 7.0% cap · market cap 4.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,204
Businesses Nearby
Explore this area
Business Placement
Demographics for 93940, CA
30,454
Population
15,451
Households
2
Avg Household Size
43
Median Age
54%
College-Educated
94%
High-School Grad
35.1 sq mi
ZIP Area
868
Density / Sq Mi
$110,669
Median Household Income
$62,711
Median Earnings
$2,305
Median Rent
$1,039,700
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?
Mixed-use property - Street-facing commercial suites accompany two residential apartments, creating a combined commercial and residential configuration.
Where is this mixed-use property located?
The property is located at 883 Lighthouse AVE Monterey, CA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Four‑unit configuration with two commercial units and two residential apartments; 2,633 square feet on a 0.1102‑acre lot; Two commercial units face Lighthouse Avenue
