Former School/Motel on Sierra
For Sale
$14,000,000
44049-73 Sierra Hwy, Lancaster, CA 93534
Former school and motel property available for sale.
Property Size87,598 SF
Price / SF$159.82
Days on Market156
Property Features for 44049-73 Sierra Hwy
General Information
Standard status
Active
Size
87,598 SF
Property subtype
Other
Building Details
Year Built
1955
Properties For Sale
at 44049-73 Sierra Hwy Contact us- Suite
- 44049-73 Sierra Hwy
- Size
- 87,598 SF
- Availability
- Not For Lease
Available Space
-Former Single Tenant School / University -Formerly Operated as a Motel -Multiple...
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Contact us
Listing Agency:
DAUM Commercial Real Estate Services City of Industrial
Listed By:
Dennis Marciniak · License #CA 00888799
(818) 449-1627
Source:
Daumcommercial
Added: Apr 3
Changed: Aug 25
Last Checked: Sep 5 at 3:37AM
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 DAUM Commercial Real Estate Services City of Industrial
Investment Insights
Based on property information with market context.
This property, formerly operated as both a single-tenant school/university and a motel, is available for sale. The property includes multiple buildings and is located on Sierra Highway.
Key Highlights
- Former single tenant school/university property.
- Formerly operated as a motel.
- Multiple buildings on the property.
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
$790,905
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
5.65%
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%
$15,818,100
$15.8M
Cap Rate 7%
$11,298,643
$11.3M
Cap Rate 9%
$8,787,833
$8.8M
Market Conditions
NOI Build-Up for 87,598 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
$1.89M $21.60/SF
− Vacancy
−$227.1K −$2.59/SF
EGI
$1.67M $19.01/SF
− OpEx
−$874.2K −$9.98/SF
NOI
$790.9K $9.03/SF
Area
Lancaster, 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%
$15,818,100
Cap Rate 7%
$11,298,643
Cap Rate 9%
$8,787,833
Alternative Uses
Best Use
Hotel Hospitality
$11.30M
$9.89M – $13.18M
NOI $790,905 @ 7.0% cap · market cap 5.65%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$27.52M
$24.08M – $32.10M
NOI $1,926,091 @ 7.0% cap · market cap 13.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
587
Businesses Nearby
Explore this area
Business Placement
Demographics for 93534, CA
43,906
Population
16,343
Households
2.7
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
19.0 sq mi
ZIP Area
2,311
Density / Sq Mi
$58,891
Median Household Income
$44,566
Median Earnings
$1,513
Median Rent
$339,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
School - Former school and motel property available for sale.
Where is this school located?
The property is located at 44049-73 Sierra Hwy Lancaster, CA.
What is the asking price?
The asking price for this property is $14,000,000.
What are key features of this property?
This property features: Former single tenant school/university property.; Formerly operated as a motel.; Multiple buildings on the property.
