Listing Agency: Zenna Enterprises Show Phone

Listed By: Deepinder Singh Grewal Show Phone

Source: Exprealty

Added: Jun 26 Changed: Aug 20 Last Checked: Aug 29 at 1:33PM

Report an Issue

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 Zenna Enterprises

Investment Insights

Based on property information with market context.

Set on 4.62 acres, this industrial compound includes two standalone buildings totaling approximately 6,000 SF. Both buildings are outfitted with heavy-duty rolling doors. Building 1 is currently leased for approximately 2,500 SF and is described as month-to-month, providing the option to keep it occupied or transition to vacancy. Building 2 is delivered vacant and is approximately 3,500 SF, suited for immediate owner-user operation or separate leasing.

The property is located on Hwy 65 at 23297 Avenue 88 in Terra Bella, CA 93270. The offering also notes freeway signage on the property. In addition, the site is in the final stage of Tulare County approval to split into four separate parcels, offering a framework for subdividing the industrial compound.

For tenants and owner-users, the current setup supports flexible occupancy: an income-producing leased building alongside a vacant building that can be tailored to operational needs. For buyers evaluating a development or phased approach, the stated four-parcel split approval process may support future strategies involving separate ownership of the resulting parcels.

Key Highlights

• 4.62‑acre industrial compound on Hwy 65 with two standalone industrial buildings totaling approx. 6,000 SF
• Building 1: approx. 2,500 SF leased for $1,800/month on a month‑to‑month basis
• Building 2: approx. 3,500 SF delivered vacant for owner‑user or lease‑up

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

$27,429

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

3.43%

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%

$548,580 $548.6K

Cap Rate 7%

$391,843 $391.8K

Cap Rate 9%

$304,767 $304.8K

Market Conditions

NOI Build-Up for 3,880 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

$34.9K $9.00/SF

− Vacancy

−$2.7K −$0.68/SF

EGI

$32.3K $8.32/SF

− OpEx

−$4.8K −$1.25/SF

NOI

$27.4K $7.07/SF

Area

Tulare County, CA

Vacancy

7.59%

Lease Rate

$9.00 /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%

$548,580

Cap Rate 7%

$391,843

Cap Rate 9%

$304,767

Alternative Uses

Best Use

Warehouse

$391.8K

$342.9K – $457.2K (±1% cap)

NOI $27,429 @ 7.0% cap · market cap 3.43%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$1.18M

$1.03M – $1.37M (±1% cap)

NOI $82,499 @ 7.0% cap · market cap 10.31%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

WPI Water Resources ... Construction Company California Marble & Granite Building Supply big dog drilling Construction Company

Suggested Use

Top Pick Auto Parts Store Garden Center (Bike/Boat/Book/etc) Store Butcher Kitchen & Bath Showroom Auto Repair Shop

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

Lease Details

41.7%

Occupancy

Location Intelligence

Trade Area within ½ mile

15

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 93270, CA

5,637

Population

1,718

Households

3.3

Avg Household Size

33

Median Age

6%

College-Educated

69%

High-School Grad

67.4 sq mi

ZIP Area

84

Density / Sq Mi

$76,795

Median Household Income

$26,827

Median Earnings

$1,082

Median Rent

$291,800

Median Home Value

Market

Vacancy Rate% for Industrial in West region

3.7% 2019

4.3% 2020

2.6% 2021

2.5% 2022

4.8% 2023

6.9% 2024

7.9% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this warehouses located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Warehouse - 4.62-acre industrial compound with two standalone buildings, heavy-duty rolling doors, and a four-parcel split pathway.

Where is this warehouse located?

The property is located at 23297 23297 Ave 88 Terra Bella, CA.

What is the asking price?

The asking price for this property is $799,999.

What are key features of this property?

This property features: 4.62‑acre industrial compound on Hwy 65 with two standalone industrial buildings totaling approx. 6,000 SF; Building 1: approx. 2,500 SF leased for $1,800/month on a month‑to‑month basis; Building 2: approx. 3,500 SF delivered vacant for owner‑user or lease‑up