Corner Drive-Through Restaurant
For Sale
$350,000
44431 Division St, Lancaster, CA 93535
Freestanding commercial property with paved parking and modification potential for several business uses.
Property Size768 SF
Days on Market8
Property Features for 44431 Division St
General Information
Standard status
Active
Size
768 SF
Property subtype
Commercial
Site & Location
Drive-Thru
No
Road Access
Yes
Additional Details
Land Use
commercial
Building Details
Building Size
768 SF
Year Built
1955
Listing Agency:
RE/MAX All-Pro
(661) 945-9461
Listed By:
Kristoffer Chaisson · License #02193637
Source:
Elliman
Added: Aug 15
Changed: Aug 16
Last Checked: Aug 21 at 8:08AM
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 freestanding drive-through restaurant property includes a commercial building and land on a corner parcel. The site has a paved lot with on-property and street parking, while the existing improvements can be modified for a new business concept.
Potential applications identified for the property include a drive-through restaurant, coffee shop, quick-service dairy, bar or lounge, retail storefront, and office space. The property is positioned at Division Street and Pondera Street, north of Avenue J, in Lancaster. Constructed in 1955, it also offers a site layout that could accommodate enclosure for certain business uses.
Potential applications identified for the property include a drive-through restaurant, coffee shop, quick-service dairy, bar or lounge, retail storefront, and office space. The property is positioned at Division Street and Pondera Street, north of Avenue J, in Lancaster. Constructed in 1955, it also offers a site layout that could accommodate enclosure for certain business uses.
Key Highlights
- Corner parcel at Division St and Pondera St, north of Avenue J
- Freestanding commercial building with land
- Paved on‑site lot plus street parking
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
$14,370
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
4.11%
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%
$287,400
$287.4K
Cap Rate 7%
$205,286
$205.3K
Cap Rate 9%
$159,667
$159.7K
Market Conditions
NOI Build-Up for 768 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
$20.3K $26.40/SF
− Vacancy
−$1.1K −$1.45/SF
EGI
$19.2K $24.95/SF
− OpEx
−$4.8K −$6.24/SF
NOI
$14.4K $18.71/SF
Area
Lancaster, CA
Vacancy
5.50%
Lease Rate
$26.40 /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%
$287,400
Cap Rate 7%
$205,286
Cap Rate 9%
$159,667
Alternative Uses
Best Use
Specialty Retail
$205.3K
$179.6K – $239.5K
NOI $14,370 @ 7.0% cap · market cap 4.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$241.2K
$211.1K – $281.5K
NOI $16,887 @ 7.0% cap · market cap 4.82%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
943
Businesses Nearby
Explore this area
Business Placement
Demographics for 93535, CA
82,149
Population
23,917
Households
3.4
Avg Household Size
31
Median Age
14%
College-Educated
78%
High-School Grad
239.0 sq mi
ZIP Area
344
Density / Sq Mi
$65,989
Median Household Income
$41,834
Median Earnings
$1,650
Median Rent
$336,200
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 - Freestanding commercial property with paved parking and modification potential for several business uses.
Where is this drive through restaurant located?
The property is located at 44431 Division St Lancaster, CA.
What is the asking price?
The asking price for this property is $350,000.
What are key features of this property?
This property features: Corner parcel at Division St and Pondera St, north of Avenue J; Freestanding commercial building with land; Paved on‑site lot plus street parking
