Restaurant with Income-Generating Residential
For Sale
$1,100,000
Pending
592 N La Cadena, Colton, CA 92324
Restaurant, office space, and three rental units in Colton.
Property Size3,840 SF
Days on Market142
Property Features for 592 N La Cadena
General Information
Standard status
Pending
Size
3,840 SF
Property subtype
Investment
Building Details
Building Size
3,840 SF
Year Built
1940
Units
4
Listing Agency:
Windermere Inland properties
Listed By:
HECTOR HERRERA · License #01206524
(951) 565-8226
Source:
Elliman
Added: Apr 24
Changed: Sep 2
Last Checked: Sep 12 at 9:20AM
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 Windermere Inland properties
Investment Insights
Based on property information with market context.
This unique property features a restaurant space with existing office space, complemented by three one-bedroom, one-bathroom residential units. The residential units are currently occupied by tenants. The restaurant space is vacant but contains equipment from the previous owner. The property is located in an area near a large senior apartment complex, a police station, city hall and other city departments, and banks. The restaurant space may be suitable for a breakfast or coffee shop, or other restaurant concept. Alternatively, the space could be converted into a retail business, subject to city approval. Exterior renovations to the residential units, including new windows, paint, and roof, were completed in 2021, along with some interior remodeling. Each unit is equipped with its own water heater, AC/heating system, and laundry hookups. Unit 114 features a newer kitchen, while unit 130 includes a bonus room that is used as a second bedroom. The property has a walk score of 72, indicating it is very walkable, a bike score of 47, indicating it is somewhat bikeable, and a transit score of 33, indicating some transit options are available.
Key Highlights
- Income‑generating property with three rented 1‑bedroom units and great tenants
- Restaurant space with original equipment, ideal for breakfast/coffee shop or other restaurant
- Prime location near senior apartments, police station, city hall, banks, and a great neighborhood
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
$39,159
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
3.56%
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%
$783,180
$783.2K
Cap Rate 7%
$559,414
$559.4K
Cap Rate 9%
$435,100
$435.1K
Market Conditions
NOI Build-Up for 3,840 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
$59.4K $15.48/SF
− Vacancy
−$3.5K −$0.91/SF
EGI
$55.9K $14.57/SF
− OpEx
−$16.8K −$4.37/SF
NOI
$39.2K $10.20/SF
Area
San Bernardino County, CA
Vacancy
5.89%
Lease Rate
$15.48 /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%
$783,180
Cap Rate 7%
$559,414
Cap Rate 9%
$435,100
Alternative Uses
Best Use
Multifamily LT 5
$559.4K
$489.5K – $652.7K
NOI $39,159 @ 7.0% cap · market cap 3.56%
Second Best
Specialty Retail
$532.0K
$465.5K – $620.7K
NOI $37,240 @ 7.0% cap · market cap 3.39%
Theoretical Best
Office A
$810.0K
$708.7K – $945.0K
NOI $56,699 @ 7.0% cap · market cap 5.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
895
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92324, CA
58,626
Population
19,150
Households
3.1
Avg Household Size
33
Median Age
16%
College-Educated
75%
High-School Grad
27.8 sq mi
ZIP Area
2,109
Density / Sq Mi
$69,419
Median Household Income
$36,956
Median Earnings
$1,600
Median Rent
$413,100
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in West region
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Frequently Asked Questions
What type of property is this?
Restaurant - Restaurant, office space, and three rental units in Colton.
Where is this restaurant located?
The property is located at 592 N La Cadena Colton, CA.
What is the asking price?
The asking price for this property is $1,100,000.
What are key features of this property?
This property features: Income‑generating property with three rented 1‑bedroom units and great tenants; Restaurant space with original equipment, ideal for breakfast/coffee shop or other restaurant; Prime location near senior apartments, police station, city hall, banks, and a great neighborhood
