Standalone Drive-Through Restaurant
New
For Sale
$2,499,000
40420 10th St W, Palmdale, CA 93551
Standalone commercial building with restaurant-oriented use potential near established retail destinations.
Property Size3,958 SF
Lot Size1.85 Acres
Days on Market3
Property Features for 40420 10th St W
General Information
Standard status
Active
Size
3,958 SF
Lot size
1.85 Acres
Property subtype
Commercial
Site & Location
Drive-Thru
No
Highway Access
Yes
Building Details
Building Size
3,958 SF
Year Built
1971
Buildings
1
Listing Agency:
Re/Max All-Pro
(661) 945-9461
Listed By:
Priyam Rajapaksa · License #01789155
Source:
Elliman
Added: Aug 8
Changed: Aug 9
Last Checked: Aug 10 at 6:22AM
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 Re/Max All-Pro
Investment Insights
Based on property information with market context.
This standalone commercial building occupies a 1.85-acre site at 40420 10th St W, with restaurant and potential drive-through applications identified for the property. Built in 1971, the asset offers a freestanding commercial format suited to its classified drive-through restaurant use.
The property is positioned at 10th St W and Ave O in Palmdale, near Walmart, Sam’s Club, Antelope Valley Mall, and a Trader Joe’s mega warehouse on 10th St W. The site is also described as minutes from the 14-Freeway, placing it within a broader retail and commercial corridor.
The property is positioned at 10th St W and Ave O in Palmdale, near Walmart, Sam’s Club, Antelope Valley Mall, and a Trader Joe’s mega warehouse on 10th St W. The site is also described as minutes from the 14-Freeway, placing it within a broader retail and commercial corridor.
Key Highlights
- 1.85‑acre site at 10th St W and Ave O
- Standalone commercial building built in 1971
- Restaurant and potential drive‑through use identified
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
$77,834
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
3.11%
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%
$1,556,680
$1.6M
Cap Rate 7%
$1,111,914
$1.1M
Cap Rate 9%
$864,822
$864.8K
Market Conditions
NOI Build-Up for 3,958 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
$109.2K $27.60/SF
− Vacancy
−$5.5K −$1.38/SF
EGI
$103.8K $26.22/SF
− OpEx
−$25.9K −$6.56/SF
NOI
$77.8K $19.67/SF
Area
Palmdale, CA
Vacancy
5.00%
Lease Rate
$27.60 /SF/Yr
Expense Ratio
25.00%
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%
$1,556,680
Cap Rate 7%
$1,111,914
Cap Rate 9%
$864,822
Alternative Uses
Best Use
Specialty Retail
$1.11M
$972.9K – $1.30M
NOI $77,834 @ 7.0% cap · market cap 3.11%
Second Best
Retail
$965.0K
$844.4K – $1.13M
NOI $67,550 @ 7.0% cap · market cap 2.70%
Theoretical Best
Office A
$1.67M
$1.46M – $1.95M
NOI $116,985 @ 7.0% cap · market cap 4.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
925
Businesses Nearby
Explore this area
Business Placement
Demographics for 93551, CA
56,001
Population
17,940
Households
3.1
Avg Household Size
38
Median Age
30%
College-Educated
87%
High-School Grad
84.8 sq mi
ZIP Area
660
Density / Sq Mi
$110,850
Median Household Income
$55,882
Median Earnings
$2,263
Median Rent
$548,800
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Standalone commercial building with restaurant-oriented use potential near established retail destinations.
Where is this drive through restaurant located?
The property is located at 40420 10th St W Palmdale, CA.
What is the asking price?
The asking price for this property is $2,499,000.
What are key features of this property?
This property features: 1.85‑acre site at 10th St W and Ave O; Standalone commercial building built in 1971; Restaurant and potential drive‑through use identified
