State Street Flex - Value Add Opportunity

Located along 980-1000 N State Street in the City of Hemet. Within 5-miles of the property there is a population of 177,849 with an AHH of $81,460. Daytime population shows 29,157.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.