Building Details

Building Size 9,191 SF

Year Built 1929

Stories 1

Listing Agency: Seffi Toneman, Broker s***@commercialbrokersgroupinc.com Show Phone

Listed By: Seffi Toneman · License #01878066 Show Phone

Source: Evrealestate

Added: Jul 31 Changed: Aug 9 Last Checked: Aug 9 at 4:38AM

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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 Seffi Toneman, Broker

Investment Insights

Based on property information with market context.

This hotel property dates to 1929 and includes propane among its interior features. Exterior details include open areas and on-street access. The property is located at 17539 Elizabeth Lake Road in Lake Hughes, California, within Los Angeles County. Access is directed from Elizabeth Lake Road to Hill Trail, and the zoning designation is LA County CRU.

Key Highlights

• Hotel property built in 1929
• LA County CRU zoning
• Propane interior feature

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

$57,300

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

3.82%

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%

$1,146,000 $1.1M

Cap Rate 7%

$818,571 $818.6K

Cap Rate 9%

$636,667 $636.7K

Market Conditions

NOI Build-Up for 9,191 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

$137.9K $15.00/SF

− Vacancy

−$17.2K −$1.88/SF

EGI

$120.6K $13.13/SF

− OpEx

−$63.3K −$6.89/SF

NOI

$57.3K $6.23/SF

Area

Los Angeles County, CA

Vacancy

12.50%

Lease Rate

$15.00 /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%

$1,146,000

Cap Rate 7%

$818,571

Cap Rate 9%

$636,667

Alternative Uses

Best Use

Hotel Hospitality

$818.6K

$716.3K – $955.0K (±1% cap)

NOI $57,300 @ 7.0% cap · market cap 3.82%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$4.92M

$4.31M – $5.74M (±1% cap)

NOI $344,458 @ 7.0% cap · market cap 22.98%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Hotels

Suggested Use

Top Pick Building Supply Auto Parts Store Garden Center Wine and Liquor Store Hair Salon Nail Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

30

Businesses Nearby

Explore this area Business Placement

Demographics for 93532, CA

2,373

Population

1,174

Households

2

Avg Household Size

44

Median Age

23%

College-Educated

92%

High-School Grad

122.0 sq mi

ZIP Area

19

Density / Sq Mi

$99,432

Median Household Income

$54,159

Median Earnings

$1,700

Median Rent

$410,000

Median Home Value

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Hotel - Hotel property with propane service and LA County CRU zoning.

Where is this hotel located?

The property is located at 17539 Elizabeth Lake Road Lake Hughes, CA.

What is the asking price?

The asking price for this property is $1,499,000.

What are key features of this property?

This property features: Hotel property built in 1929; LA County CRU zoning; Propane interior feature