Restaurant-Ready Commercial
For Sale
Contact for pricing
12070 Palm Drive, Desert Hot Springs, CA 92240
Restaurant-ready buildout with an installed kitchen system and dedicated dining, suited for owner-users or hospitality concepts.
Property Size3,000 SF
Price / SF$233
Days on Market55
Property Features for 12070 Palm Drive
General Information
Standard status
Active
Size
3,000 SF
Property subtype
Retail
Zoning
C-2
Investment Type
Owner/User
Additional Details
Business Included
Yes
Commercial Hood
Yes
Building Details
Year Built
1957
Tenancy
Single
Listing Agency:
Equity Union Commercial
(760) 592-1571
Listed By:
Brandy Nelson · License #CA 0147142
Source:
Crexi
Added: Jun 18
Changed: Aug 8
Last Checked: Aug 10 at 9:17AM
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 Equity Union Commercial
Investment Insights
Based on property information with market context.
Restaurant-ready commercial property currently operating as Thai Palms Restaurant, with a built-out front-of-house dining area and back-of-house commercial kitchen infrastructure. The interior includes multiple seating arrangements, decorative finishes such as wood-look flooring and blue ceilings, and front-of-house service features including a service/cashier counter, beverage display cooler, customer entry, and takeout or host area. The kitchen includes a hood system, cooking line with fryer/cooking equipment, range, stainless prep surfaces, commercial sinks, dishwashing area, refrigeration/freezer areas, dry storage, and shelving, along with utility areas.
The exterior offers prominent signage, large front windows, security gates, stone façade details, and sidewalk frontage with nearby street parking. The property is positioned along a highly visible commercial corridor within the downtown Desert Hot Springs commercial area.
This space is well suited for a restaurateur or hospitality operator seeking an existing food-service layout with key kitchen and utility components already in place. It may also be of interest to investors purchasing a turn-key restaurant buildout, with the understanding that the buyer must verify zoning, permitted use, square footage, occupancy and seating capacity, ADA compliance, health department requirements, licenses, what equipment is included, and the condition of all building systems.
The exterior offers prominent signage, large front windows, security gates, stone façade details, and sidewalk frontage with nearby street parking. The property is positioned along a highly visible commercial corridor within the downtown Desert Hot Springs commercial area.
This space is well suited for a restaurateur or hospitality operator seeking an existing food-service layout with key kitchen and utility components already in place. It may also be of interest to investors purchasing a turn-key restaurant buildout, with the understanding that the buyer must verify zoning, permitted use, square footage, occupancy and seating capacity, ADA compliance, health department requirements, licenses, what equipment is included, and the condition of all building systems.
Key Highlights
- Restaurant‑ready commercial property with front dining area and back‑of‑house commercial kitchen infrastructure
- Installed hood system, cooking line, fryer/cooking equipment, range, and stainless prep surfaces
- Includes refrigeration/freezer areas, dry storage, shelving, and utility 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
$37,827
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
5.41%
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%
$756,540
$756.5K
Cap Rate 7%
$540,386
$540.4K
Cap Rate 9%
$420,300
$420.3K
Market Conditions
NOI Build-Up for 3,000 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
$54.0K $18.00/SF
− Vacancy
−$3.6K −$1.19/SF
EGI
$50.4K $16.81/SF
− OpEx
−$12.6K −$4.20/SF
NOI
$37.8K $12.61/SF
Area
Riverside County, CA
Vacancy
6.60%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
25.00%
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%
$756,540
Cap Rate 7%
$540,386
Cap Rate 9%
$420,300
Alternative Uses
Best Use
Specialty Retail
$540.4K
$472.8K – $630.5K
NOI $37,827 @ 7.0% cap · market cap 5.41%
Second Best
Industrial
$351.9K
$308.0K – $410.6K
NOI $24,636 @ 7.0% cap · market cap 3.52%
Theoretical Best
Office A
$898.7K
$786.4K – $1.05M
NOI $62,912 @ 7.0% cap · market cap 9.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
558
Businesses Nearby
40k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
ARCO
Shops & Services
12,944 visits/mo
0.4 miles
Dollar General
Shops & Services
9,108 visits/mo
0.3 miles
AutoZone
Shops & Services
6,916 visits/mo
0.4 miles
AMPM
Shops & Services
5,773 visits/mo
0.5 miles
Spectrum
Shops & Services
2,042 visits/mo
0.1 miles
Demographics for 92240, CA
40,920
Population
15,977
Households
2.6
Avg Household Size
34
Median Age
15%
College-Educated
78%
High-School Grad
35.7 sq mi
ZIP Area
1,146
Density / Sq Mi
$51,284
Median Household Income
$32,137
Median Earnings
$1,367
Median Rent
$294,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant-ready buildout with an installed kitchen system and dedicated dining, suited for owner-users or hospitality concepts.
Where is this conventional restaurant located?
The property is located at 12070 Palm Drive Desert Hot Springs, CA.
What is the asking price?
The asking price for this property is $699,000.
What are key features of this property?
This property features: Restaurant‑ready commercial property with front dining area and back‑of‑house commercial kitchen infrastructure; Installed hood system, cooking line, fryer/cooking equipment, range, and stainless prep surfaces; Includes refrigeration/freezer areas, dry storage, shelving, and utility areas
