Building Details

Building Size 1,900 SF

Listing Agency: a***@yahoo.com Show Phone

Listed By: Alejandra Cortez · License #02139251 Show Phone

Source: Elliman

Added: Mar 10 Changed: Aug 22 Last Checked: Aug 22 at 11:05AM

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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 Alejandra Cortez

Investment Insights

Based on property information with market context.

This mixed-use property is located in Planada, California. The building previously operated as a hair salon for 36 years. The commercial front space features large display windows, visibility, and natural light, suitable for a salon, boutique, office, or small business. The property includes bonus rooms that provide additional space, suitable for an owner-operator or as an additional rental unit for extra income. The property is situated in a high-traffic area near schools, shops, and main road access, minutes from Merced and Highway 140.

Key Highlights

• High‑traffic location with excellent visibility, ideal for commercial use.
• Mixed‑use property offering both commercial and residential potential.
• Established commercial history as a hair salon for 36 years.

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

$13,352

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

3.38%

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%

$267,040 $267.0K

Cap Rate 7%

$190,743 $190.7K

Cap Rate 9%

$148,356 $148.4K

Market Conditions

NOI Build-Up for 1,900 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

$22.8K $12.00/SF

− Vacancy

−$1.4K −$0.76/SF

EGI

$21.4K $11.24/SF

− OpEx

−$8.0K −$4.22/SF

NOI

$13.4K $7.03/SF

Area

Merced County, CA

Vacancy

6.30%

Lease Rate

$12.00 /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%

$267,040

Cap Rate 7%

$190,743

Cap Rate 9%

$148,356

Alternative Uses

Best Use

Mixed Use

$190.7K

$166.9K – $222.5K (±1% cap)

NOI $13,352 @ 7.0% cap · market cap 3.38%

Second Best

—

—

no second resolved use

Theoretical Best

Healthcare Medical

$419.2K

$366.8K – $489.1K (±1% cap)

NOI $29,344 @ 7.0% cap · market cap 7.43%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Deanna's Hair Salon Hair Salon

Suggested Use

Top Pick Parking Lot & Garage Grocery & Convenience Store Bakery Pharmacy Catering Service Hair Salon

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

131

Businesses Nearby

Explore this area Business Placement

Demographics for 95365, CA

4,502

Population

1,292

Households

3.5

Avg Household Size

31

Median Age

4%

College-Educated

48%

High-School Grad

3.7 sq mi

ZIP Area

1,217

Density / Sq Mi

$40,718

Median Household Income

$34,893

Median Earnings

$893

Median Rent

$237,200

Median Home Value

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Frequently Asked Questions

What type of property is this?

Mixed-use property - Mixed-use property with commercial space and residential potential in Planada.

Where is this mixed-use property located?

The property is located at 9387 Broadway St E Planada, CA.

What is the asking price?

The asking price for this property is $395,000.

What are key features of this property?

This property features: High‑traffic location with excellent visibility, ideal for commercial use.; Mixed‑use property offering both commercial and residential potential.; Established commercial history as a hair salon for 36 years.