Building Details

Number of units 4

Flooring type Carpet, Vinyl, Tile

Building materials Stone

Roof type Composition

Architectural style Cottage

Additional Structures Shed(s)

Listing Agency: Alpine Realty, Inc a***@snowcrest.net Show Phone

Listed By: Kristina Jones · License #02075837 Show Phone

Added: Sep 18, 2024 Changed: Sep 3 Last Checked: Sep 4 at 5:06PM

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MLS# 20241295

Copyright © 2026 Siskiyou 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.

This hotel property comprises 2,700 square feet across four studio cabins and one one-bedroom cabin. Stone construction, cottage-style architecture, decks, and a shed define the improvements, while wood and a wood stove provide heating. Interior features include carpet, vinyl, and tile flooring, along with ranges, refrigerators, washers, and dryers.

Set on 0.37 acres at 29386 Castella Loop, the property is in Castella, California. The wooded setting provides a natural environment, with access to highways and nearby parks and recreational areas. The cabin mix creates a compact hospitality configuration with varied accommodation layouts.

Key Highlights

• Five‑cabin configuration with four studios and one one‑bedroom cabin
• 2,700 square feet of property improvements on 0.37 acres
• Stone construction with cottage‑style architecture

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

$23,026

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

7.55%

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%

$460,520 $460.5K

Cap Rate 7%

$328,943 $328.9K

Cap Rate 9%

$255,844 $255.8K

Market Conditions

NOI Build-Up for 2,700 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

$51.5K $19.08/SF

− Vacancy

−$3.0K −$1.13/SF

EGI

$48.5K $17.95/SF

− OpEx

−$25.5K −$9.43/SF

NOI

$23.0K $8.53/SF

Area

Shasta County, CA

Vacancy

5.90%

Lease Rate

$19.08 /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%

$460,520

Cap Rate 7%

$328,943

Cap Rate 9%

$255,844

Alternative Uses

Best Use

Apartment 5plus

$421.9K

$369.2K – $492.2K (±1% cap)

NOI $29,532 @ 7.0% cap · market cap 9.68%

Second Best

Hotel Hospitality

$328.9K

$287.8K – $383.8K (±1% cap)

NOI $23,026 @ 7.0% cap · market cap 7.55%

Theoretical Best

Specialty Retail

$601.1K

$526.0K – $701.3K (±1% cap)

NOI $42,078 @ 7.0% cap · market cap 13.80%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Hotels

Lease Details

5

Residential units

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

15

Businesses Nearby

Explore this area Business Placement

Demographics for 96017, CA

169

Population

180

Households

0.9

Avg Household Size

61

Median Age

31%

College-Educated

96%

High-School Grad

93.4 sq mi

ZIP Area

2

Density / Sq Mi

$46,500

Median Household Income

$593

Median Rent

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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

Frequently Asked Questions

What type of property is this?

Hotel - Stone construction and a wooded setting support a distinctive overnight lodging configuration.

Where is this hotel located?

The property is located at 29386 Castella Loop Castella, CA.

What is the asking price?

The asking price for this property is $305,000.

What are key features of this property?

This property features: Five‑cabin configuration with four studios and one one‑bedroom cabin; 2,700 square feet of property improvements on 0.37 acres; Stone construction with cottage‑style architecture