Downtown Chico Mixed-Use
For Sale
Contact for pricing
225 Main St, Chico, CA 95928
Mixed-use building in downtown Chico near university.
Property Size23,444 SF
Price / SF$149.29
Days on Market925
Property Features for 225 Main St
General Information
Standard status
Active
Size
23,444 SF
Class
B
Property subtype
Retail
Zoning
DN (Downtown North)
Lease Type
NNN
Investment Type
Value Add
Building Details
Year Built
1965
Year Renovated
1979
Stories
2
Units
20
Tenancy
Multi
Listing Agency:
Harris Commercial
(530) 419-1600
Listed By:
Brandon Harris · License #01318261
Source:
Crexi
Added: Feb 8, 2024
Changed: Aug 8
Last Checked: Aug 19 at 2:17PM
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 Harris Commercial
Investment Insights
Based on property information with market context.
Located in the core of Downtown Chico, near California State University, Chico, this mixed-use property fronts Main Street between 2nd and 3rd Streets and extends to Wall Street, adjacent to a municipal parking lot. Currently configured as The Garden Walk Mall, it features 20 leasable units for retail, personal services, restaurants, and office space. The property offers the opportunity to continue the existing layout, improve the tenancy model, or redevelop into a traditional retail building accommodating tenants up to 23,450 square feet. The ground floor spans approximately 16,950 square feet, with a second floor of about 6,500 square feet. The front 10,000 square feet features open clear-span arched wood truss construction, while the rear 6,500 square foot, two-story section is CMU block with steel support columns. Zoned DN (Downtown North), the property allows for various uses, including retail, personal service, educational, cultural, recreational, office, and residential uses above the ground floor. The allowable building height is 85 feet. Traffic counts on Main Street are approximately 15,000 ADT, with pedestrian traffic supported by over 15,000 CSU, Chico students. The property has two main entrances on Main Street and Wall Street, with signage available on both entrances and street parking on both sides.
Key Highlights
- Prime Downtown Chico location, steps from CSU Chico, with high pedestrian traffic.
- Mixed‑use building with 20 leasable units, offering diverse income potential.
- Redevelopment potential into a traditional retail building up to 23,450 SF.
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
$290,006
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
8.29%
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%
$5,800,120
$5.8M
Cap Rate 7%
$4,142,943
$4.1M
Cap Rate 9%
$3,222,289
$3.2M
Market Conditions
NOI Build-Up for 23,444 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
$438.9K $18.72/SF
− Vacancy
−$24.6K −$1.05/SF
EGI
$414.3K $17.67/SF
− OpEx
−$124.3K −$5.30/SF
NOI
$290.0K $12.37/SF
Area
Chico, CA
Vacancy
5.60%
Lease Rate
$18.72 /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%
$5,800,120
Cap Rate 7%
$4,142,943
Cap Rate 9%
$3,222,289
Alternative Uses
Best Use
Retail
$4.14M
$3.63M – $4.83M
NOI $290,006 @ 7.0% cap · market cap 8.29%
Second Best
Mixed Use
$3.78M
$3.31M – $4.41M
NOI $264,448 @ 7.0% cap · market cap 7.56%
Theoretical Best
Office A
$4.73M
$4.14M – $5.52M
NOI $331,346 @ 7.0% cap · market cap 9.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,066
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95928, CA
38,378
Population
17,455
Households
2.2
Avg Household Size
35
Median Age
41%
College-Educated
90%
High-School Grad
145.4 sq mi
ZIP Area
264
Density / Sq Mi
$65,350
Median Household Income
$32,615
Median Earnings
$1,419
Median Rent
$476,600
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.
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Frequently Asked Questions
What type of property is this?
Shopping center - Mixed-use building in downtown Chico near university.
Where is this shopping center located?
The property is located at 225 Main St Chico, CA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: Prime Downtown Chico location, steps from CSU Chico, with high pedestrian traffic.; Mixed‑use building with 20 leasable units, offering diverse income potential.; Redevelopment potential into a traditional retail building up to 23,450 SF.
