Commercial Land With
For Sale
$329,000
9640 Malpaso, Phelan, CA 92371
Existing residence requires substantial renovation, with utilities currently inactive and reconstruction permits already obtained.
Property Size3,640 SF
Price / SF$90.38
Days on Market13
Property Features for 9640 Malpaso
General Information
Standard status
Active
Size
3,640 SF
Property subtype
General Commercial
Amenities
Composition
2 Parking Spaces.
Building Details
Year Built
1977
Listing Agency:
RE/MAX FREEDOM
(760) 488-6471
Listed By:
Emily Stiltz · License #02233666
Source:
Xome
Added: Jul 29
Changed: Aug 9
Last Checked: Aug 10 at 2:32AM
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 RE/MAX FREEDOM
Investment Insights
Based on property information with market context.
This commercially zoned land parcel includes an existing residence constructed in 1977 and offered in its present AS-IS condition. The residence requires substantial renovation, while completed site work includes an added bedroom and bathroom, removal of a fire-damaged structure, demolition of a former chicken coop, and extensive debris removal and cleanup. Permits have been obtained to reconstruct the original structure. Utilities are currently inactive.
The property is located at 9640 Malpaso in Phelan, California, on a paved road with access to shopping, services, and Hwy 138. Potential redevelopment, restoration, and live-work concepts are identified in the property information, subject to verification of applicable uses, zoning, permits, and development requirements with the appropriate agencies.
The property is located at 9640 Malpaso in Phelan, California, on a paved road with access to shopping, services, and Hwy 138. Potential redevelopment, restoration, and live-work concepts are identified in the property information, subject to verification of applicable uses, zoning, permits, and development requirements with the appropriate agencies.
Key Highlights
- Commercially zoned land with an existing residence
- Residence constructed in 1977 and sold AS‑IS
- Permits obtained for reconstruction of the original structure
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
$29,511
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
8.97%
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%
$590,220
$590.2K
Cap Rate 7%
$421,586
$421.6K
Cap Rate 9%
$327,900
$327.9K
Market Conditions
NOI Build-Up for 3,640 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
$50.2K $13.80/SF
− Vacancy
−$3.0K −$0.83/SF
EGI
$47.2K $12.97/SF
− OpEx
−$17.7K −$4.86/SF
NOI
$29.5K $8.11/SF
Area
San Bernardino County, CA
Vacancy
6.00%
Lease Rate
$13.80 /SF/Yr
Expense Ratio
37.50%
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%
$590,220
Cap Rate 7%
$421,586
Cap Rate 9%
$327,900
Alternative Uses
Best Use
Office B
$612.1K
$535.6K – $714.1K
NOI $42,844 @ 7.0% cap · market cap 13.02%
Second Best
Mixed Use
$421.6K
$368.9K – $491.9K
NOI $29,511 @ 7.0% cap · market cap 8.97%
Theoretical Best
Office A
$767.8K
$671.8K – $895.8K
NOI $53,746 @ 7.0% cap · market cap 16.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
53
Businesses Nearby
Explore this area
Business Placement
Demographics for 92371, CA
16,345
Population
6,683
Households
2.4
Avg Household Size
40
Median Age
12%
College-Educated
87%
High-School Grad
132.1 sq mi
ZIP Area
124
Density / Sq Mi
$78,761
Median Household Income
$39,703
Median Earnings
$1,701
Median Rent
$351,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Existing residence requires substantial renovation, with utilities currently inactive and reconstruction permits already obtained.
Where is this commercial land located?
The property is located at 9640 Malpaso Phelan, CA.
What is the asking price?
The asking price for this property is $329,000.
What are key features of this property?
This property features: Commercially zoned land with an existing residence; Residence constructed in 1977 and sold AS‑IS; Permits obtained for reconstruction of the original structure
