Description
Offered at $1,798,000, 3542 Lake Tahoe Blvd represents one of the best commercial properties available in South Lake Tahoe's Tourist Core. This 5,591 SF, three-section-building asset sits directly on Highway 50, a quarter mile from the Heavenly Ski Resort gondola and near Ski Run Marina, among the highest-traffic intersections on the South Shore.The PropertyThree spaces total 5,591 SF sit on a 18,731 SF lot with on-site parking. Building C offers 2,040 SF of open floor space with 12-foot ceilings ideal for retail, showroom, restaurant, or experiential use. Building B, a former brewery, offers 900 SF of renovated bar and hospitality space with ADA-compliant bar counter, upgraded electrical and plumbing, drainage systems intact beneath the floor, ventilation infrastructure above the ceiling, and a capped fresh water well on site. Building A houses 1,057 SF of historic retail/commercial space with a 1,057 SF semi-finished basement directly below offering independent access potential, plus a 900 SF unfinished studio apartment above representing an additional residential income opportunity.The current occupant has operated a board sports retail business on the premises since 1984 and is now transitioning out. FF&E and equipment, rental fleet, and retail inventory are available for separate negotiation and are not included in the real property asking price.The Zoning OpportunityTSC-G Tourist Core zoning under the City of South Lake Tahoe's Tourist Core Area Plan permits retail, food and beverage, hotel and motel, multi-family residential, time sharing, and mixed-use development, all allowed by right. Building height maximum is 42 feet. This is among the most permissive and valuable zoning designations in South Lake Tahoe, and parcels of this size within the Tourist Core rarely come to market.The Infrastructure AdvantageFor any food and beverage or hospitality operator, the existing buildout represents an estimated $150,000-$300,000 in avoided construction costs. The former brewery infrastructure includes drainage systems beneath the floors, ventilation above the ceiling, and a capped fresh water well. The bar space has received new sheetrock, insulation, flooring, upgraded electrical and plumbing, and an ADA-compliant bar counter. The building is positioned to receive a caf, taproom, restaurant, juice bar, or similar concept with significantly less capital outlay than a ground-up buildout would require.The Investment CaseThis is a value-add acquisition in a supply-constrained tourist market. A stabilized, multi-tenant pro forma leasing the commercial spaces at market rates of $2.50/SF/month NNN supports a gross income of $167,730 annually and a pro forma CAP rate of 9.33%.
