Building Details

Year Built 1982

Year Renovated 2023

Listing Agency: EverlyGrove Hotel Brokers a***@everlygrove.com Show Phone

Listed By: Aaron Graves · License #01787901

Source: Crexi

Added: Feb 23 Changed: Aug 8 Last Checked: Aug 8 at 2:57PM

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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 EverlyGrove Hotel Brokers

Investment Insights

Based on property information with market context.

Located along the Pacific Coast Highway in San Simeon, California, the Comfort Inn is a 48-key hotel encompassing 26,018 square feet. The hotel is situated on approximately 1.00 acre on California’s Central Coast. The property includes an on-site approximately 2,500 sq. ft. restaurant space, ideal for hotel guests. The restaurant space is currently rented month to month at $3,300 per month. The owner pays property taxes, while the tenant is responsible for all other utilities. The restaurant space can be kept as-is or redeveloped.

Key Highlights

• Located on the Pacific Coast Highway in San Simeon, California.
• 48‑key hotel.
• Includes an on‑site ±2,500 sq. ft. restaurant space.

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

$234,911

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

2.97%

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%

$4,698,220 $4.7M

Cap Rate 7%

$3,355,871 $3.4M

Cap Rate 9%

$2,610,122 $2.6M

Market Conditions

NOI Build-Up for 26,018 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

$562.0K $21.60/SF

− Vacancy

−$67.4K −$2.59/SF

EGI

$494.6K $19.01/SF

− OpEx

−$259.6K −$9.98/SF

NOI

$234.9K $9.03/SF

Area

San Luis Obispo County, CA

Vacancy

12.00%

Lease Rate

$21.60 /SF/Yr

Expense Ratio

52.50%

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%

$4,698,220

Cap Rate 7%

$3,355,871

Cap Rate 9%

$2,610,122

Alternative Uses

Best Use

Hotel Hospitality

$3.36M

$2.94M – $3.92M (±1% cap)

NOI $234,911 @ 7.0% cap · market cap 2.97%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$10.23M

$8.95M – $11.94M (±1% cap)

NOI $716,273 @ 7.0% cap · market cap 9.07%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Hotels

Suggested Use

Top Pick Nail Salon Grocery & Convenience Store Restaurant Law Firm Food Market Travel Agency

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

67

Businesses Nearby

Explore this area Business Placement

Demographics for 93452, CA

522

Population

296

Households

1.8

Avg Household Size

41

Median Age

4%

College-Educated

53%

High-School Grad

114.2 sq mi

ZIP Area

5

Density / Sq Mi

$54,705

Median Household Income

$50,841

Median Earnings

$1,343

Median Rent

$276,600

Median Home Value

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Frequently Asked Questions

What type of property is this?

Hotel - 48-key hotel with restaurant space on California's Central Coast.

Where is this hotel located?

The property is located at 9280 Castillo Dr San Simeon, CA.

What is the asking price?

The asking price for this property is $7,900,000.

What are key features of this property?

This property features: Located on the Pacific Coast Highway in San Simeon, California.; 48‑key hotel.; Includes an on‑site ±2,500 sq. ft. restaurant space.