Building Details

Year Built 2000

Listing Agency: Sharon Rose Realty, Inc f***@gmail.com Show Phone

Listed By: Faisal Alserri · License #CA 02053133

Source: Crexi

Added: Sep 6, 2024 Changed: Aug 14 Last Checked: Aug 23 at 12:30PM

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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 Sharon Rose Realty, Inc

Investment Insights

Based on property information with market context.

This property features a turn-key auto repair business and property, presenting an opportunity to utilize a double lot with two buildings for two separate businesses. The property has highway frontage and includes a 1,200 square foot garage with 2 bays, 2 auto lifts, large roll-up doors, ample storage, and a rear covered storage area. A fenced yard provides 8 spots in the gated area. An additional parking area offers 18 more spaces and a covered carport in the front of the property. The detached office building, approximately 440 square feet, includes a worker/clients restroom, waiting room, and back office. A security system is in place. The 15,921 square foot double lot consists of two contiguous lots, each almost 8,000 square feet, potentially allowing for the creation of two independent companies or the sale of one of the properties. The property also features a rear alley. A post sign over 20 feet tall is present, benefiting from approximately 20,000 to 25,000 annual daily traffic. Located in Morongo Valley, the property is situated between Palm Springs and Joshua Tree. The property is suitable for auto shops, automotive properties, retail spaces, parking lots, office units, office spaces, and general commercial real estate.

Key Highlights

• Turn‑key auto repair business opportunity with property, equipment negotiable.
• Double lot (15,921 sqft) with two buildings suitable for separate businesses or sale.
• High‑traffic highway frontage (20‑25,000 daily) with over 20ft tall post sign.**

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

$23,507

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

4.70%

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%

$470,140 $470.1K

Cap Rate 7%

$335,814 $335.8K

Cap Rate 9%

$261,189 $261.2K

Market Conditions

NOI Build-Up for 1,640 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

$35.4K $21.60/SF

− Vacancy

−$1.8K −$1.12/SF

EGI

$33.6K $20.48/SF

− OpEx

−$10.1K −$6.14/SF

NOI

$23.5K $14.33/SF

Area

San Bernardino County, CA

Vacancy

5.20%

Lease Rate

$21.60 /SF/Yr

Expense Ratio

30.00%

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%

$470,140

Cap Rate 7%

$335,814

Cap Rate 9%

$261,189

Alternative Uses

Best Use

Retail

$335.8K

$293.8K – $391.8K (±1% cap)

NOI $23,507 @ 7.0% cap · market cap 4.70%

Second Best

Industrial

$192.4K

$168.3K – $224.5K (±1% cap)

NOI $13,467 @ 7.0% cap · market cap 2.69%

Theoretical Best

Office A

$345.9K

$302.7K – $403.6K (±1% cap)

NOI $24,215 @ 7.0% cap · market cap 4.84%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Auto shops

Suggested Use

Top Pick HVAC Service Electrical Service Auto Parts Store Grocery & Convenience Store Storage Facility Garden 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.

Location Intelligence

Trade Area within ½ mile

137

Businesses Nearby

29k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Chevron Shops & Services

23,236 visits/mo 0.5 miles

Dollar General Shops & Services

5,742 visits/mo 0.2 miles

Demographics for 92256, CA

3,517

Population

1,971

Households

1.8

Avg Household Size

50

Median Age

16%

College-Educated

91%

High-School Grad

63.4 sq mi

ZIP Area

55

Density / Sq Mi

$56,821

Median Household Income

$43,738

Median Earnings

$1,362

Median Rent

$265,100

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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Similar Off Market Nearby

• Leo's Auto Repair — 49929 29 Palms Hwy, Morongo Valley, CA 92256
• Liberty Automotive Repair — 49813 29 Palms Hwy, Morongo Valley, CA 92256
• Morongo Tires — 49578 29 Palms Hwy, Morongo Valley, CA 92256

Frequently Asked Questions

What type of property is this?

Auto shop - Turn-key auto repair business on a double lot.

Where is this auto shop located?

The property is located at 49927 29 Palms Hwy Morongo Valley, CA.

What is the asking price?

The asking price for this property is $500,000.

What are key features of this property?

This property features: Turn‑key auto repair business opportunity with property, equipment negotiable.; Double lot (15,921 sqft) with two buildings suitable for separate businesses or sale.; High‑traffic highway frontage (20‑25,000 daily) with over 20ft tall post sign.**