Building Details

Building Size 1,514 SF

Buildings 3

Listing Agency: Pacific One Real Estate

Listed By: Christopher Beard Show Phone

Source: Elliman

Added: Sep 20 Last Checked: Sep 26 at 9:54AM

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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 Pacific One Real Estate

Investment Insights

Based on property information with market context.

Rainbow Resort is a hospitality property with three cabins at 35940 State Highway 96 in Klamath River, California. The accommodations are positioned in a natural setting associated with mountains, rivers, trails, and outdoor recreation.

The property is located in Northern California and offers access by State Highway 96. Walk Score is 0, indicating a car-dependent setting, while Bike Score is 4, classified as somewhat bikeable.

Key Highlights

• Three cabins included in the resort property
• Located at 35940 State Highway 96, Klamath River, CA 96050
• Mountain and river setting in Northern California

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

$8,144

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

3.26%

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%

$162,880 $162.9K

Cap Rate 7%

$116,343 $116.3K

Cap Rate 9%

$90,489 $90.5K

Market Conditions

NOI Build-Up for 1,514 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

$22.7K $15.00/SF

− Vacancy

−$5.6K −$3.68/SF

EGI

$17.1K $11.33/SF

− OpEx

−$9.0K −$5.95/SF

NOI

$8.1K $5.38/SF

Area

Siskiyou County, CA

Vacancy

24.50%

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%

$162,880

Cap Rate 7%

$116,343

Cap Rate 9%

$90,489

Alternative Uses

Best Use

Hotel Hospitality

$116.3K

$101.8K – $135.7K (±1% cap)

NOI $8,144 @ 7.0% cap · market cap 3.26%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$445.4K

$389.7K – $519.6K (±1% cap)

NOI $31,176 @ 7.0% cap · market cap 12.47%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Resorts

Location Intelligence

Trade Area within ½ mile

5

Businesses Nearby

Explore this area Business Placement

Demographics for 96050, CA

476

Population

258

Households

1.8

Avg Household Size

54

Median Age

20%

College-Educated

93%

High-School Grad

258.7 sq mi

ZIP Area

2

Density / Sq Mi

$36,450

Median Household Income

$30,000

Median Earnings

$595

Median Rent

$237,500

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this resorts 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?

Resort - Resort property with three cabins in a mountain and river setting.

Where is this resort located?

The property is located at 35940 State Highway 96 Klamath River, CA.

What is the asking price?

The asking price for this property is $250,000.

What are key features of this property?

This property features: Three cabins included in the resort property; Located at 35940 State Highway 96, Klamath River, CA 96050; Mountain and river setting in Northern California