State Street Flex FOR SALE


Hemet, CA - Outer San Jacinto | 
$5,410,000 USD
909-230-4500
, Hemet, CA for Sale
$5,410,000 USD
FOR SALE
1/1
null | 5% Cap Rate

State Street Flex
Hemet, CA
Outer San Jacinto


HIGHLIGHTS

  • Textbook Value-Add Opportunity: With a current occupancy of 52% and low in-place rents averaging $0.93/SF gross.
  • 13.17% Proforma Yield: If leased to 90% occupancy at an average rate of $1.14/SF gross, the property features an estimated proforma NOI of $821,000
  • Multiple Paths to Create Value: Including the lease-up of the existing 48% of vacant space, development or sale of the additional 1.55 acres of land
  • Significant Recent CapEx Investments: New “Enviro-White” reflective elastomeric acrylics coatings over all 4 flat roofs (remaining 6 roofs are steel)
  • ±1.55 Acres of Additional Land at Virtually No Cost: No value has been attributed to the land as a part of the asking price.
  • Small, Versatile Flex Space with Large Tenant Pool: With an average space size of under 1,000 SF, the industrial flex design allows diverse tenants

OVERVIEW

State Street Flex has been held by a family trust for many years. For much of that period no leasing agent was assigned and vacant space was not actively marketed. It stands 48% vacant today. An agent was engaged in mid-2026 and has since signed multiple leases upwards of $1.31/SF. The surrounding market is tight. Per CoStar, Hemet and San Jacinto contain 4.2 million SF of industrial/flex space at an approximately 2.1% vacancy with nothing currently under construction, within a broader 9.5 million SF commercial market at 6.9% vacancy. The $61/SF basis sits below replacement cost and includes 1.55 acres of separately parceled, heavy manufacturing–zoned land to which no value has been attributed. 43,088 SF is available to lease. At the $5,410,000 asking price plus approximately $830,000 for tenant improvements, leasing commissions, and building/site work, stabilizing at 90% occupancy and $1.14/SF on average, produces roughly $821,000 of net operating income — a 13.17% yield on the total capitalized basis (purchase price + cost to stabilize), and a value of approximately $10,950,000 at a 7.50% exit cap.

ASK ABOUT THIS PROPERTY

Greg Bedell, CCIMProgressive Real Estate PartnersMore Info
909-230-4500

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Greg Bedell, CCIMProgressive Real Estate PartnersMore Info
909-230-4500

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.