Building Details

Year Built 1965

Listing Agency: Amulet Realty Show Phone

Listed By: Victoria Gureyeva · License #01247704 Show Phone

Source: Exitrealty

Added: Aug 31, 2025 Changed: Sep 10 Last Checked: Sep 15 at 4:36AM

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Investment Insights

Based on property information with market context.

This resort-style hospitality property consists of two APNs totaling 7.23 acres, developed with a compound of six commercial buildings. Several structures feature 25'-30' high ceilings and mountain views. Onsite improvements include a large aquatics center with an enormous pool, a restaurant with a fully equipped kitchen, and a gym. The property also includes a former half-way house with 160 rooms for occupancy of 320 people. The remaining components include administrative space and other building improvements used to support the overall operation.

The site is located in close proximity to Cabazon, Morongo, and Palm Springs, and is described as minutes from FWY 10.

For buyers and operators, the configuration supports a hospitality-oriented redevelopment or adaptation, with dedicated spaces for dining, fitness, and aquatic recreation. The layout and building mix may also fit alternative commercial uses such as retail plazas or resort- and hotel-type facilities, based on the seller’s stated plans for possible reuse. Additionally, the seller reports submitted applications for cannabis manufacturing, cultivation, and distribution, which may be relevant to buyers evaluating cannabis-related development paths.

Key Highlights

• 6 commercial buildings on 7.23 acres across 2 APNs, located minutes from FWY 10 near Cabazon, Morongo, and Palm Springs.
• Building heights of 25'-30' with Mountain View's.
• Aquatics center building with enormous pool: 7,200 sq.ft.

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

$395,653

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

4.68%

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%

$7,913,060 $7.9M

Cap Rate 7%

$5,652,186 $5.7M

Cap Rate 9%

$4,396,144 $4.4M

Market Conditions

NOI Build-Up for 64,570 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

$968.6K $15.00/SF

− Vacancy

−$135.6K −$2.10/SF

EGI

$833.0K $12.90/SF

− OpEx

−$437.3K −$6.77/SF

NOI

$395.7K $6.13/SF

Area

Riverside County, CA

Vacancy

14.00%

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%

$7,913,060

Cap Rate 7%

$5,652,186

Cap Rate 9%

$4,396,144

Alternative Uses

Best Use

Specialty Retail

$11.63M

$10.18M – $13.57M (±1% cap)

NOI $814,163 @ 7.0% cap · market cap 9.64%

Second Best

Hotel Hospitality

$5.65M

$4.95M – $6.59M (±1% cap)

NOI $395,653 @ 7.0% cap · market cap 4.68%

Theoretical Best

Office A

$19.34M

$16.93M – $22.57M (±1% cap)

NOI $1,354,086 @ 7.0% cap · market cap 16.02%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Hotels

Suggested Use

Top Pick Daycare Center Gym & Fitness Center

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

30 ft

Clear height

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

16

Businesses Nearby

Explore this area Business Placement

Demographics for 92282, CA

1,350

Population

603

Households

2.2

Avg Household Size

42

Median Age

19%

College-Educated

87%

High-School Grad

75.5 sq mi

ZIP Area

18

Density / Sq Mi

$69,271

Median Household Income

$35,969

Median Earnings

$1,197

Median Rent

$272,600

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 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 - Multi-building hospitality campus with high ceilings and an aquatics center, suited for resorts, hotels, or mixed-use concepts.

Where is this hotel located?

The property is located at 55860 HAUGEN LEHMAN Way Whitewater, CA.

What is the asking price?

The asking price for this property is $8,450,000.

What are key features of this property?

This property features: 6 commercial buildings on 7.23 acres across 2 APNs, located minutes from FWY 10 near Cabazon, Morongo, and Palm Springs.; Building heights of 25'-30' with Mountain View's.; Aquatics center building with enormous pool: 7,200 sq.ft.