Limited Service Hotel Off
For Sale
Contact for pricing
3135 Old Highway 395, Fallbrook, CA 92028
Quality Inn Fallbrook is a limited service hotel positioned immediately off Interstate 15 and Highway 76.
Property Size19,391 SF
Price / SF$288.79
Days on Market64
Property Features for 3135 Old Highway 395
General Information
Standard status
Active
Size
19,391 SF
Property subtype
Hospitality
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
1984
Year Renovated
2024
Stories
2
Units
41
Listing Agency:
Marcus & Millichap - Inland Empire
Listed By:
Gordon Allred · License #CA 00927200
(909) 456-3481
Source:
Crexi
Added: Jul 6
Changed: Aug 27
Last Checked: Sep 6 at 4:05AM
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 Marcus & Millichap - Inland Empire
Investment Insights
Based on property information with market context.
Marcus & Millichap is exclusively marketing the Quality Inn Fallbrook I-15 for sale. This limited service hotel is described as well located with access immediately off Interstate 15 and Highway 76, serving a mix of leisure, casino, wedding, and regional traveler demand.
The property is noted to benefit from highway visibility and easy ingress/egress from I-15, with convenient access to Fallbrook, Temecula, Oceanside, and surrounding North County San Diego communities.
Interested parties are encouraged to schedule tours through the listing agent and to visit the subject property prior to submitting offers.
The property is noted to benefit from highway visibility and easy ingress/egress from I-15, with convenient access to Fallbrook, Temecula, Oceanside, and surrounding North County San Diego communities.
Interested parties are encouraged to schedule tours through the listing agent and to visit the subject property prior to submitting offers.
Key Highlights
- Year built: 1984
- Limited service hotel positioned immediately off Interstate 15 and Highway 76
- Easy ingress/egress from I‑15, a major Southern California north–south corridor
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
$318,270
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
5.68%
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%
$6,365,400
$6.4M
Cap Rate 7%
$4,546,714
$4.5M
Cap Rate 9%
$3,536,333
$3.5M
Market Conditions
NOI Build-Up for 19,391 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
$781.8K $40.32/SF
− Vacancy
−$111.8K −$5.77/SF
EGI
$670.0K $34.55/SF
− OpEx
−$351.8K −$18.14/SF
NOI
$318.3K $16.41/SF
Area
San Diego County, CA
Vacancy
14.30%
Lease Rate
$40.32 /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%
$6,365,400
Cap Rate 7%
$4,546,714
Cap Rate 9%
$3,536,333
Alternative Uses
Best Use
Hotel Hospitality
$4.55M
$3.98M – $5.30M
NOI $318,270 @ 7.0% cap · market cap 5.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$8.88M
$7.77M – $10.37M
NOI $621,902 @ 7.0% cap · market cap 11.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
61
Businesses Nearby
Explore this area
Business Placement
Demographics for 92028, CA
51,614
Population
17,985
Households
2.9
Avg Household Size
41
Median Age
35%
College-Educated
87%
High-School Grad
116.7 sq mi
ZIP Area
442
Density / Sq Mi
$102,346
Median Household Income
$46,862
Median Earnings
$1,743
Median Rent
$781,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Quality Inn Fallbrook is a limited service hotel positioned immediately off Interstate 15 and Highway 76.
Where is this hotel located?
The property is located at 3135 Old Highway 395 Fallbrook, CA.
What is the asking price?
The asking price for this property is $5,600,000.
What are key features of this property?
This property features: Year built: 1984; Limited service hotel positioned immediately off Interstate 15 and Highway 76; Easy ingress/egress from I‑15, a major Southern California north–south corridor
