Building Details

Year Built 1930

Stories 1

Listing Agency: Red Hawk Realty

Listed By: Meriah Druliner and Donn Bree · License #CA DRE #01109566

Source: Crexi

Added: Apr 5, 2024 Changed: Sep 4 Last Checked: Aug 31 at 8:44AM

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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 Red Hawk Realty

Investment Insights

Based on property information with market context.

The Lodge on Palomar Mountain presents a unique opportunity to own a piece of history. Established in the 1920s, this property offers a blend of historic ambiance and modern comforts. Situated on a 3.74-acre estate, the Lodge provides a mountain experience enhanced by modern upgrades. The property features a grand 1,800 +/-sf great room, complete with log-beam ceilings and a natural stone fireplace. There are ten guest rooms that have been remodeled for contemporary comfort, along with new doors and windows that provide natural light, and new carpeting. A solar system is installed to reduce environmental impact and energy costs. The Lodge on Palomar Mountain is suited for creating lasting memories. The property size is 5,584 square feet and is located at 22228 Crestline Rd., Palomar Mountain, CA 92060.

Key Highlights

• Historic lodge established in the 1920s on 3.74 acres.
• Boasts a stunning 1,800 +\/- sf. great room with log‑beam ceilings and stone fireplace.
• Ten completely remodeled guest rooms.

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

$91,652

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

9.17%

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%

$1,833,040 $1.8M

Cap Rate 7%

$1,309,314 $1.3M

Cap Rate 9%

$1,018,356 $1.0M

Market Conditions

NOI Build-Up for 5,584 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

$225.1K $40.32/SF

− Vacancy

−$32.2K −$5.77/SF

EGI

$193.0K $34.55/SF

− OpEx

−$101.3K −$18.14/SF

NOI

$91.7K $16.41/SF

Area

San Diego County, CA

Vacancy

14.30%

Lease Rate

$40.32 /SF/Yr

Expense Ratio

52.50%

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%

$1,833,040

Cap Rate 7%

$1,309,314

Cap Rate 9%

$1,018,356

Alternative Uses

Best Use

Hotel Hospitality

$1.31M

$1.15M – $1.53M (±1% cap)

NOI $91,652 @ 7.0% cap · market cap 9.17%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.56M

$2.24M – $2.98M (±1% cap)

NOI $179,088 @ 7.0% cap · market cap 17.93%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Bed & breakfasts

Location Intelligence

Trade Area within ½ mile

1

Businesses Nearby

Explore this area Business Placement

Demographics for 92060, CA

288

Population

187

Households

1.5

Avg Household Size

53

Median Age

15%

College-Educated

88%

High-School Grad

68.9 sq mi

ZIP Area

4

Density / Sq Mi

$150,758

Median Household Income

$625,000

Median Home Value

Questions? Ask Rey

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What type of property is this? Where is this bed & breakfasts located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Bed & breakfast - Historic lodge with modern upgrades on scenic 3.74-acre estate.

Where is this bed & breakfast located?

The property is located at 22228 Crestline Rd Palomar Mountain, CA.

What is the asking price?

The asking price for this property is $999,000.

What are key features of this property?

This property features: Historic lodge established in the 1920s on 3.74 acres.; Boasts a stunning 1,800 +\/- sf. great room with log‑beam ceilings and stone fireplace.; Ten completely remodeled guest rooms.