Established Restaurant with Liquor
For Sale
$625,000
69032 East Palm Canyon Drive, Cathedral City, CA 92234
Profitable restaurant and catering business with Type 47 liquor license.
Property Size4,000 SF
Price / SF$156.25
Days on Market164
Property Features for 69032 East Palm Canyon Drive
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Business For Sale
Listing Agency:
(760) 578-6131
Listed By:
Joe Funkey · License #CalDRE #02227357
Source:
Cbclyle
Added: Mar 6
Changed: Jul 6
Last Checked: Aug 17 at 5:54AM
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 Joe Funkey
Investment Insights
Based on property information with market context.
This offering features a restaurant and catering business that has been successfully operating for over 25 years. The sale includes a Type 47 Liquor License, a 12-foot hood, and all furniture, fixtures, and equipment (FF&E), including two vans and a storage container. The current location encompasses approximately 4,000 square feet and is situated in the Cathedral Gateway shopping center, specifically at the northeast corner of East Palm Canyon Drive and Date Palm Drive. The restaurant provides seating for 52 patrons inside and an additional 25 on the patio. The current lease has 4 years remaining, with options for two 3-year extensions. The business reports annual sales of $1,400,000.00, with the owner's profit stated as $175,000. The business employs 7 full-time and 20 part-time staff and has a grease trap.
Key Highlights
- Established restaurant and catering business with a 25‑year operating history.
- Includes a Type 47 Liquor License.
- High annual sales of $1,400,000.00 with an owner's profit of $175,000.
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
$50,436
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
8.07%
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%
$1,008,720
$1.0M
Cap Rate 7%
$720,514
$720.5K
Cap Rate 9%
$560,400
$560.4K
Market Conditions
NOI Build-Up for 4,000 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
$72.0K $18.00/SF
− Vacancy
−$4.8K −$1.19/SF
EGI
$67.2K $16.81/SF
− OpEx
−$16.8K −$4.20/SF
NOI
$50.4K $12.61/SF
Area
Riverside County, CA
Vacancy
6.60%
Lease Rate
$18.00 /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%
$1,008,720
Cap Rate 7%
$720,514
Cap Rate 9%
$560,400
Alternative Uses
Best Use
Specialty Retail
$720.5K
$630.5K – $840.6K
NOI $50,436 @ 7.0% cap · market cap 8.07%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,883 @ 7.0% cap · market cap 13.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
877
Businesses Nearby
24k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 55%
Shops & Services 31%
Home Improvements & Furnishings 9%
Hotels & Casinos 4%
Taco Bell
Dining
7,194 visits/mo
0.4 miles
Denny's
Dining
5,877 visits/mo
0.2 miles
Palm Springs Ford
Shops & Services
3,961 visits/mo
0.5 miles
Ferguson
Home Improvements & Furnishings
1,504 visits/mo
0.5 miles
Napa Auto Parts
Shops & Services
1,392 visits/mo
0.1 miles
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 Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Profitable restaurant and catering business with Type 47 liquor license.
Where is this conventional restaurant located?
The property is located at 69032 East Palm Canyon Drive Cathedral City, CA.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Established restaurant and catering business with a 25‑year operating history.; Includes a Type 47 Liquor License.; High annual sales of $1,400,000.00 with an owner's profit of $175,000.
