Two-Unit Tilt-Up Flex
For Sale
$1,800,000
68739 Summit Drive, Cathedral City, CA 92234
Industrial flex property with adaptable suites, fenced parking, and a front unit built out for cannabis manufacturing.
Property Size7,729 SF
Price / SF$232.89
Days on Market27
Property Features for 68739 Summit Drive
General Information
Standard status
Active
Size
7,729 SF
Additional Details
Fenced Yard
Yes
Land Use
industrial, warehouse, cannabis manufacturing, service commercial
Amenities
fenced parking area
Building Details
Building Size
7,729 SF
Year Built
1973
Construction
tilt-up
Tenancy
Multi
Listing Agency:
Desert Pacific Properties Inc
(760) 360-8200
Listed By:
Paula Turner · License #00702492
(760) 360-8200
Source:
Evrealestate
Added: Jul 29
Changed: Aug 23
Last Checked: Aug 24 at 5:34AM
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 Desert Pacific Properties Inc
Investment Insights
Based on property information with market context.
This two-unit tilt-up flex building in Cathedral City, California, offers flexible suite configurations for industrial, warehouse, cannabis manufacturing, and service commercial uses. The property includes a fenced parking area, while the front unit is built out for cannabis manufacturing. A cannabis license and equipment are also available for sale, with details available upon request.
Located at 68739 Summit Dr, the property was built in 1973. Walk Score is 16, Bike Score is 6, and Transit Score is 30, reflecting a car-dependent setting with some transit access and limited bikeability.
Located at 68739 Summit Dr, the property was built in 1973. Walk Score is 16, Bike Score is 6, and Transit Score is 30, reflecting a car-dependent setting with some transit access and limited bikeability.
Key Highlights
- Two‑unit tilt‑up industrial building
- Flexible suite configurations for industrial, warehouse, cannabis manufacturing, and service commercial uses
- Front unit built out for cannabis manufacturing
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
$77,070
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
4.28%
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%
$1,541,400
$1.5M
Cap Rate 7%
$1,101,000
$1.1M
Cap Rate 9%
$856,333
$856.3K
Market Conditions
NOI Build-Up for 7,729 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
$96.5K $12.48/SF
− Vacancy
−$5.8K −$0.75/SF
EGI
$90.7K $11.73/SF
− OpEx
−$13.6K −$1.76/SF
NOI
$77.1K $9.97/SF
Area
Riverside County, CA
Vacancy
6.00%
Lease Rate
$12.48 /SF/Yr
Expense Ratio
15.00%
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%
$1,541,400
Cap Rate 7%
$1,101,000
Cap Rate 9%
$856,333
Alternative Uses
Best Use
Warehouse
$1.10M
$963.4K – $1.28M
NOI $77,070 @ 7.0% cap · market cap 4.28%
Second Best
Industrial
$906.7K
$793.4K – $1.06M
NOI $63,469 @ 7.0% cap · market cap 3.53%
Theoretical Best
Office A
$2.32M
$2.03M – $2.70M
NOI $162,083 @ 7.0% cap · market cap 9.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Yes
Fenced yard
Location Intelligence
Trade Area within ½ mile
1,085
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 92234, CA
51,509
Population
23,114
Households
2.2
Avg Household Size
42
Median Age
26%
College-Educated
81%
High-School Grad
14.8 sq mi
ZIP Area
3,480
Density / Sq Mi
$67,031
Median Household Income
$34,895
Median Earnings
$1,554
Median Rent
$420,700
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
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Frequently Asked Questions
What type of property is this?
Flex space - Industrial flex property with adaptable suites, fenced parking, and a front unit built out for cannabis manufacturing.
Where is this flex space located?
The property is located at 68739 Summit Drive Cathedral City, CA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: Two‑unit tilt‑up industrial building; Flexible suite configurations for industrial, warehouse, cannabis manufacturing, and service commercial uses; Front unit built out for cannabis manufacturing
