Mixed-Use Property in La
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8870-78 La Mesa Blvd, La Mesa, CA 91942
Fully leased mixed-use property with cash flow and redevelopment potential.
Property Size18,048 SF
Lot Size0.86 Acres
Price / SF$337.99
Days on Market270
Property Features for 8870-78 La Mesa Blvd
General Information
Standard status
Active
Size
18,048 SF
Lot size
0.86 Acres
Property subtype
Multifamily
Building Details
Buildings
2
Stories
2
Units
15
Listing Agency:
Colliers - Los Angeles - La Jolla, California
(858) 373-3237
Listed By:
Aaron Bove · License #CA 01318320
Source:
Crexi
Added: Nov 13, 2025
Changed: Aug 8
Last Checked: Jul 23 at 3:51PM
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 Colliers - Los Angeles - La Jolla, California
Investment Insights
Based on property information with market context.
The property at 8870-78 La Mesa Blvd, part of the Fite Plaza / Bel Arms ensemble, is a fully leased, income-producing, mixed-use property. It offers immediate cash flow and potential for value-add or redevelopment. The asset combines a 5-tenant retail building with 11,120 square feet and a 10-unit apartment complex, situated on 0.86 acres. It is located in an accessible and desirable location in East County. The retail component generates stable cash flow from a diversified tenant roster. The multifamily component offers upside through normalization of rents, interior upgrades, or repositioning. A creative owner could explore infill or densification strategies due to the site’s compact footprint and location near major freeways and community amenities. This property represents an opportunity to acquire a multi-layered real estate play in La Mesa.
Key Highlights
- Fully leased mixed‑use property offering immediate cash flow.
- Features an 11,120 SF retail building with 5 tenants and a 10‑unit apartment complex on 0.86 acres.
- Located in a highly accessible East County location near major freeways.
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
$389,772
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
6.39%
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%
$7,795,440
$7.8M
Cap Rate 7%
$5,568,171
$5.6M
Cap Rate 9%
$4,330,800
$4.3M
Market Conditions
NOI Build-Up for 18,048 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
$727.7K $40.32/SF
− Vacancy
−$104.1K −$5.77/SF
EGI
$623.6K $34.55/SF
− OpEx
−$233.9K −$12.96/SF
NOI
$389.8K $21.60/SF
Area
San Diego County, CA
Vacancy
14.30%
Lease Rate
$40.32 /SF/Yr
Expense Ratio
37.50%
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%
$7,795,440
Cap Rate 7%
$5,568,171
Cap Rate 9%
$4,330,800
Alternative Uses
Best Use
Mixed Use
$5.57M
$4.87M – $6.50M
NOI $389,772 @ 7.0% cap · market cap 6.39%
Second Best
Apartment 5plus
$4.28M
$3.75M – $5.00M
NOI $299,877 @ 7.0% cap · market cap 4.92%
Theoretical Best
Office A
$8.27M
$7.24M – $9.65M
NOI $578,830 @ 7.0% cap · market cap 9.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,274
Businesses Nearby
Explore this area
Business Placement
Demographics for 91942, CA
40,813
Population
18,488
Households
2.2
Avg Household Size
39
Median Age
38%
College-Educated
94%
High-School Grad
5.8 sq mi
ZIP Area
7,037
Density / Sq Mi
$81,262
Median Household Income
$57,064
Median Earnings
$1,934
Median Rent
$689,300
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 - Fully leased mixed-use property with cash flow and redevelopment potential.
Where is this mixed-use property located?
The property is located at 8870-78 La Mesa Blvd La Mesa, CA.
What is the asking price?
The asking price for this property is $6,100,000.
What are key features of this property?
This property features: Fully leased mixed‑use property offering immediate cash flow.; Features an 11,120 SF retail building with 5 tenants and a 10‑unit apartment complex on 0.86 acres.; Located in a highly accessible East County location near major freeways.
