Paradise Live-Work Development
For Sale
$385,000
8941 Skyway, Paradise, CA 95969
2.55 acres with commercial shop and residential development potential.
Property Size2,725 SF
Lot Size2.55 Acres
Price / SF$141.28
Days on Market162
Property Features for 8941 Skyway
General Information
Standard status
Active
Size
2,725 SF
Lot size
2.55 Acres
Property subtype
Commercial
Amenities
Back Yard
Composition Roof
Front Yard
Gentle Sloping
Irregular Lot
Lot Over 40000 Sqft
Street Level
Yard
Listing Agency:
AMERICAN HOMES AND LAND
(530) 413-0041
Listed By:
CHARI BULLOCK · License #01426229
Source:
Corcoran
Added: Feb 27
Changed: Aug 8
Last Checked: Jul 15 at 10:24PM
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 AMERICAN HOMES AND LAND
Investment Insights
Based on property information with market context.
This 2.55-acre property in Paradise, California, offers a live-work and development opportunity. The property consists of three contiguous parcels, combining commercial and residential potential. One parcel includes a 2,725 square foot commercial shop with an office, previously used as a cabinet shop. It features infrastructure, fenced parking, and street frontage. The two residential parcels have a Paradise Irrigation District (PID) water account, mostly level building areas, and views of Little Butte Creek Canyon. This provides flexibility for development, expansion, or a live-work lifestyle. The property is centrally located with access to new schools, upgraded community infrastructure, and main roads, balancing convenience with a semi-rural setting. The location is near the Paradise Recreation Trail for walking and biking, as well as hiking, rivers, lakes, boating, and camping. The area is suited for homesteading, gardening, and enjoying nature. This property is suitable for entrepreneurs, developers, or anyone seeking a live-work property with versatility, visibility, and lifestyle appeal.
Key Highlights
- 2.55 acres of contiguous parcels offering combined commercial and residential potential.
- 2,725± sq ft commercial shop with office, solid infrastructure, and fenced parking.**
- Active Paradise Irrigation District (PID) water account and mostly level building areas.
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
$27,591
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
7.17%
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%
$551,820
$551.8K
Cap Rate 7%
$394,157
$394.2K
Cap Rate 9%
$306,567
$306.6K
Market Conditions
NOI Build-Up for 2,725 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
$49.1K $18.00/SF
− Vacancy
−$4.9K −$1.80/SF
EGI
$44.1K $16.20/SF
− OpEx
−$16.6K −$6.07/SF
NOI
$27.6K $10.13/SF
Area
Butte County, CA
Vacancy
10.00%
Lease Rate
$18.00 /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%
$551,820
Cap Rate 7%
$394,157
Cap Rate 9%
$306,567
Alternative Uses
Best Use
Office B
$1.07M
$936.4K – $1.25M
NOI $74,911 @ 7.0% cap · market cap 19.46%
Second Best
Retail
$909.3K
$795.6K – $1.06M
NOI $63,650 @ 7.0% cap · market cap 16.53%
Theoretical Best
Office A
$1.27M
$1.11M – $1.48M
NOI $88,659 @ 7.0% cap · market cap 23.03%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
232
Businesses Nearby
Explore this area
Business Placement
Demographics for 95969, CA
5,710
Population
3,908
Households
1.5
Avg Household Size
55
Median Age
30%
College-Educated
95%
High-School Grad
50.7 sq mi
ZIP Area
113
Density / Sq Mi
$72,250
Median Household Income
$47,969
Median Earnings
$1,244
Median Rent
$419,900
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - 2.55 acres with commercial shop and residential development potential.
Where is this mixed-use property located?
The property is located at 8941 Skyway Paradise, CA.
What is the asking price?
The asking price for this property is $385,000.
What are key features of this property?
This property features: 2.55 acres of contiguous parcels offering combined commercial and residential potential.; 2,725± sq ft commercial shop with office, solid infrastructure, and fenced parking.**; Active Paradise Irrigation District (PID) water account and mostly level building areas.
