Licensed Cannabis Cultivation
For Sale
$5,950,000
13300 Little Morongo Road, Desert Hot Springs, CA 92240
COMMERCIAL - Desert Hot Springs, CA
Property Size45,553 SF
Lot Size8.14 Acres
Price / SF$130.62
Days on Market256
Property Features for 13300 Little Morongo Road
General Information
Property type
Commercial Sale
Property subtype
Other
Subdivision
340 - Desert Hot Springs
Standard status
Active
APN
663270012
Size
45,553 SF
Lot size
8.14 Acres
Building Details
Year built
2019
Listing Agency:
Desert Pacific Properties
(760) 360-8200
Listed By:
Paula Turner · License #00702492
(760) 360-8200
Added: Dec 8, 2025
Changed: Aug 4
Last Checked: Aug 21 at 3:06AM
MLS# 219139756
Copyright © 2026 California Desert Association of REALTORS®. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 2019, this licensed cannabis facility contains 45,553 square feet across manufacturing, distribution, and mixed-light cultivation areas. The property includes 15,553 square feet designated for pharma-grade manufacturing and distribution, plus 27,400 square feet of mixed-light cultivation space. That cultivation area is organized into 10 bays with 70 lights per bay.
The facility occupies 8.14 net acres at 13300 Little Morongo Road in Desert Hot Springs, California. The site offers room for additional expansion, and the property information states that no city manufacturing tax applies in Desert Hot Springs.
The facility occupies 8.14 net acres at 13300 Little Morongo Road in Desert Hot Springs, California. The site offers room for additional expansion, and the property information states that no city manufacturing tax applies in Desert Hot Springs.
Key Highlights
- 45,553 SF licensed cannabis facility built in 2019
- 15,553 SF pharma‑grade manufacturing and distribution area
- 27,400 SF mixed‑light cultivation space
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
$454,233
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
7.63%
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%
$9,084,660
$9.1M
Cap Rate 7%
$6,489,043
$6.5M
Cap Rate 9%
$5,047,033
$5.0M
Market Conditions
NOI Build-Up for 45,553 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
$568.5K $12.48/SF
− Vacancy
−$34.1K −$0.75/SF
EGI
$534.4K $11.73/SF
− OpEx
−$80.2K −$1.76/SF
NOI
$454.2K $9.97/SF
Area
Riverside County, CA
Vacancy
6.00%
Lease Rate
$12.48 /SF/Yr
Expense Ratio
15.00%
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%
$9,084,660
Cap Rate 7%
$6,489,043
Cap Rate 9%
$5,047,033
Alternative Uses
Best Use
Warehouse
$6.49M
$5.68M – $7.57M
NOI $454,233 @ 7.0% cap · market cap 7.63%
Second Best
Industrial
$5.34M
$4.68M – $6.23M
NOI $374,074 @ 7.0% cap · market cap 6.29%
Theoretical Best
Office A
$13.65M
$11.94M – $15.92M
NOI $955,284 @ 7.0% cap · market cap 16.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
52
Businesses Nearby
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?
Cannabis property - The operation combines manufacturing, distribution, and mixed-light cultivation with room for additional expansion.
Where is this cannabis property located?
The property is located at 13300 Little Morongo Road Desert Hot Springs, CA.
What is the asking price?
The asking price for this property is $5,950,000.
What are key features of this property?
This property features: 45,553 SF licensed cannabis facility built in 2019; 15,553 SF pharma‑grade manufacturing and distribution area; 27,400 SF mixed‑light cultivation space
