Anaheim Hills Conversion
For Sale
$25,000,000
5710 E La Palma Ave, Anaheim, CA 92807
118-room property suitable for residential conversion in Anaheim Hills.
Property Size60,312 SF
Price / SF$414.51
Days on Market281
Property Features for 5710 E La Palma Ave
General Information
Standard status
Active
Size
60,312 SF
Class
C
Property subtype
Multifamily
Building Details
Building Size
60,312 SF
Year Built
1979
Listing Agency:
Sperry Commercial Global Affiliates Irvine
(310) 704-9109
Listed By:
Luis Vazquez · License #CalDRE #00841513
Source:
Sperrycga
Added: Nov 21, 2025
Changed: Aug 28
Last Checked: Aug 28 at 8:23AM
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 Sperry Commercial Global Affiliates Irvine
Investment Insights
Based on property information with market context.
This property presents an opportunity for conversion to permanent residential housing or senior living, with zoning changes effective June 2025 allowing for such use. Currently operating as the Motel 6 and Studio 6 Anaheim Hills, the property features 118 rooms, including 28 suites within the Studio 6 section. A large common area with a sizable pool offers potential for repurposing into additional living space to support the conversion. Situated on approximately 2.9 acres, the property includes ample parking with 119 spaces. The location in Anaheim Hills, a community in Orange County, Southern California, places it directly south of Yorba Linda. While part of Anaheim, Anaheim Hills is geographically distinct from central Anaheim. The property is located just west of the 91 Freeway, visible from the Imperial Highway off-ramp. The Nixon Presidential Museum is nearby to the west in Yorba Linda. The property benefits from excellent street exposure and freeway signage visibility and is located across the street from significant retail establishments.
Key Highlights
- Conversion opportunity to permanent housing or senior living (zoned Mixed Use Medium, effective June 2025).
- Large 2.9‑acre lot with ample parking (119 spaces).
- Prime location in Anaheim Hills with excellent street exposure and freeway signage visibility.**
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
$1,004,224
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
4.02%
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%
$20,084,480
$20.1M
Cap Rate 7%
$14,346,057
$14.3M
Cap Rate 9%
$11,158,044
$11.2M
Market Conditions
NOI Build-Up for 60,312 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
$1.92M $31.80/SF
− Vacancy
−$92.1K −$1.53/SF
EGI
$1.83M $30.27/SF
− OpEx
−$821.6K −$13.62/SF
NOI
$1.00M $16.65/SF
Area
Anaheim, CA
Vacancy
4.80%
Lease Rate
$31.80 /SF/Yr
Expense Ratio
45.00%
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%
$20,084,480
Cap Rate 7%
$14,346,057
Cap Rate 9%
$11,158,044
Alternative Uses
Best Use
Apartment 5plus
$14.35M
$12.55M – $16.74M
NOI $1,004,224 @ 7.0% cap · market cap 4.02%
Second Best
Hotel Hospitality
$7.78M
$6.81M – $9.08M
NOI $544,545 @ 7.0% cap · market cap 2.18%
Theoretical Best
Office A
$21.91M
$19.17M – $25.56M
NOI $1,533,614 @ 7.0% cap · market cap 6.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,244
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 92807, CA
37,627
Population
12,985
Households
2.9
Avg Household Size
44
Median Age
47%
College-Educated
92%
High-School Grad
11.0 sq mi
ZIP Area
3,421
Density / Sq Mi
$136,089
Median Household Income
$62,020
Median Earnings
$2,959
Median Rent
$918,000
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Studio 6 Anaheim Hills, CA — 5710 E La Palma Ave, Anaheim, CA 92807
- Anaheim Hills Inn and Suites — 5710 E La Palma Ave, Anaheim, CA 92807
- Motel 6 Anaheim Hills, CA — 5710 E La Palma Ave, Anaheim, CA 92807
- RED Roof INN Fulton — 5710 e la palma ave, anaheim, ca 92807
- aarushhotels — 1265 N Chrisden St, Anaheim, CA 92807
Frequently Asked Questions
What type of property is this?
Motel - 118-room property suitable for residential conversion in Anaheim Hills.
Where is this motel located?
The property is located at 5710 E La Palma Ave Anaheim, CA.
What is the asking price?
The asking price for this property is $25,000,000.
What are key features of this property?
This property features: Conversion opportunity to permanent housing or senior living (zoned Mixed Use Medium, effective June 2025).; Large 2.9‑acre lot with ample parking (119 spaces).; Prime location in Anaheim Hills with excellent street exposure and freeway signage visibility.**
