Industrial Warehouse with Expansion
For Sale
$3,150,000
65311 San Jacinto, Desert Hot Springs, CA 92240
Industrial warehouse on a corner lot with expansion potential.
Property Size19,634 SF
Lot Size2.52 Acres
Price / SF$160.44
Days on Market148
Property Features for 65311 San Jacinto
General Information
Standard status
Active
Size
19,634 SF
Lot size
2.52 Acres
Property subtype
Commercial
Building Details
Year Built
2018
Listing Agency:
LPT Realty
(760) 275-0403
Listed By:
Edrick Pineda · License #02116945
(760) 275-0403
Source:
Elliman
Added: Mar 26
Changed: Aug 17
Last Checked: Aug 20 at 11:50AM
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 LPT Realty
Investment Insights
Based on property information with market context.
Located in the growing Industrial Corridor of Desert Hot Springs, this property offers a rare opportunity to acquire an approximately 19,634 square foot industrial warehouse on an approximately 2.52-acre corner lot. Zoned M (Light Manufacturing), the property supports a wide range of uses including warehouse, distribution, manufacturing, multi-office, and flex industrial. It is also well-suited for specialized operations such as cannabis, data infrastructure, or EV-related uses. The property has undergone major renovations, including upgrades to plumbing and electrical systems. It is equipped with 277/480V 3-phase power and a diesel generator. The functional layout includes multiple manufacturing and storage rooms, distribution/packaging areas, inventory space, offices, a conference room, lobby, break room, and washrooms, offering the flexibility to support single-tenant or multi-tenant configurations. The site is secured with gated access and an extensive security system. A key differentiator is the approximately 15,000+ square feet of additional buildable land, creating the opportunity to expand structures, add yard space, install equipment, or develop additional income streams. Strategically located near I-10 and the Amazon Logistics Facility, the property benefits from strong regional logistics access and continued industrial growth. It is ideal for an owner-user, flex industrial operator, or value-add investor seeking a scalable asset with infrastructure and expansion potential.
Key Highlights
- Large 2.5‑acre corner lot with over 15,000 SF of additional buildable land.
- Located in a prime industrial corridor near I‑10 and an Amazon logistics facility.
- Zoned M (Light Manufacturing) to support a wide range of uses.
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
$161,231
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
5.12%
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%
$3,224,620
$3.2M
Cap Rate 7%
$2,303,300
$2.3M
Cap Rate 9%
$1,791,456
$1.8M
Market Conditions
NOI Build-Up for 19,634 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
$245.0K $12.48/SF
− Vacancy
−$14.7K −$0.75/SF
EGI
$230.3K $11.73/SF
− OpEx
−$69.1K −$3.52/SF
NOI
$161.2K $8.21/SF
Area
Riverside County, CA
Vacancy
6.00%
Lease Rate
$12.48 /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%
$3,224,620
Cap Rate 7%
$2,303,300
Cap Rate 9%
$1,791,456
Alternative Uses
Best Use
Industrial
$2.30M
$2.02M – $2.69M
NOI $161,231 @ 7.0% cap · market cap 5.12%
Second Best
Flex RnD
$2.14M
$1.87M – $2.50M
NOI $149,715 @ 7.0% cap · market cap 4.75%
Theoretical Best
Office A
$5.88M
$5.15M – $6.86M
NOI $411,741 @ 7.0% cap · market cap 13.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
62
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
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 Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Flex space - Industrial warehouse on a corner lot with expansion potential.
Where is this flex space located?
The property is located at 65311 San Jacinto Desert Hot Springs, CA.
What is the asking price?
The asking price for this property is $3,150,000.
What are key features of this property?
This property features: Large 2.5‑acre corner lot with over 15,000 SF of additional buildable land.; Located in a prime industrial corridor near I‑10 and an Amazon logistics facility.; Zoned M (Light Manufacturing) to support a wide range of uses.
