Lancaster Retail Property For
For Sale
Contact for pricing
44430 Challenger Way, Lancaster, CA 93535
Long-term NNN lease with over 9 years remaining.
Property Size15,251 SF
Price / SF$349.28
Days on Market694
Property Features for 44430 Challenger Way
General Information
Standard status
Active
Size
15,251 SF
Property subtype
Retail
Zoning
CPD
Listing Agency:
Stream Capital Partners
(312) 899-6664
Listed By:
Connor Shell · License #CA 01993313
Source:
Crexi
Added: Sep 16, 2024
Changed: Aug 9
Last Checked: May 12 at 10:50PM
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 Stream Capital Partners
Investment Insights
Based on property information with market context.
This commercial property in Lancaster, California, is currently for sale. The property is suitable for retail and specialty purposes, including drug stores and NNN properties. The site is subject to a long-term, 20-year NNN lease with CVS, set to expire in January 2034, with over 9 years remaining on the lease term. The property has a size of 15251 square feet.
Key Highlights
- Long term 20‑year NNN lease provides stability
- CVS Tenant
- Lease through January 2034
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
$285,361
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
5.36%
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%
$5,707,220
$5.7M
Cap Rate 7%
$4,076,586
$4.1M
Cap Rate 9%
$3,170,678
$3.2M
Market Conditions
NOI Build-Up for 15,251 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
$402.6K $26.40/SF
− Vacancy
−$22.1K −$1.45/SF
EGI
$380.5K $24.95/SF
− OpEx
−$95.1K −$6.24/SF
NOI
$285.4K $18.71/SF
Area
Lancaster, CA
Vacancy
5.50%
Lease Rate
$26.40 /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%
$5,707,220
Cap Rate 7%
$4,076,586
Cap Rate 9%
$3,170,678
Alternative Uses
Best Use
Specialty Retail
$4.08M
$3.57M – $4.76M
NOI $285,361 @ 7.0% cap · market cap 5.36%
Second Best
Retail
$3.61M
$3.16M – $4.21M
NOI $252,886 @ 7.0% cap · market cap 4.75%
Theoretical Best
Office A
$4.79M
$4.19M – $5.59M
NOI $335,337 @ 7.0% cap · market cap 6.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
266
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 93535, CA
82,149
Population
23,917
Households
3.4
Avg Household Size
31
Median Age
14%
College-Educated
78%
High-School Grad
239.0 sq mi
ZIP Area
344
Density / Sq Mi
$65,989
Median Household Income
$41,834
Median Earnings
$1,650
Median Rent
$336,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Similar Off Market Nearby
- Walmart Pharmacy — 1731 E Ave. J, Lancaster, CA 93535
- Hi-Desert Medical Pharmacy — 1002 E Ave. J, Lancaster, CA 93535
- Cecilia J. Watson, RPH — 1010 E Ave. J Unit 133-1A, Lancaster, CA 93535
- CVS — 44430 Challenger Way, Lancaster, CA 93535
- CVS Pharmacy y más — 44430 Challenger Way, Lancaster, CA 93535, United States
Frequently Asked Questions
What type of property is this?
Drug store - Long-term NNN lease with over 9 years remaining.
Where is this drug store located?
The property is located at 44430 Challenger Way Lancaster, CA.
What is the asking price?
The asking price for this property is $5,326,917.
What are key features of this property?
This property features: Long term 20‑year NNN lease provides stability; CVS Tenant; Lease through January 2034
