Two-Story Restaurant Building with
For Sale
$2,800,000
3941 Erie Street, Willoughby, OH 44094
SINGLE_FAMILY - Willoughby, OH
Property Size8,700 SF
Lot Size1.56 Acres
Price / SF$321.84
Days on Market511
Property Features for 3941 Erie Street
General Information
Property type
Residential
Property subtype
Retail
Parking
48
Patio and Porch features
Patio
Elementary school district
Willoughby-Eastlake - 4309
Middle school district
Willoughby-Eastlake - 4309
High school district
Willoughby-Eastlake - 4309
Directions
Erie St. just north of Route 20 adjacent to Chagrin River across from Willoughby Municipal Court.
Standard status
Active
APN
27-B-037-0-00-006-0
Lot size
1.56 Acres
Taxes and HOA fees
Tax Year
2024
Tax Annual Amount
34167
Utilities
Sewer type
Public Sewer
Heating system
Natural Gas, Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
2016
Floors in Building
2
Roof type
Flat
Listing Agency:
Keller Williams Greater Cleveland Northeast · Keller Williams Realty
(440) 255-5500
Listed By:
Rick Osborne · License #2010001710
(440) 299-5190
Added: Mar 17, 2025
Changed: Aug 1
Last Checked: Aug 9 at 7:06PM
MLS# 5107172
Copyright © 2026 MLS Now. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
A modern two-story restaurant building offering approximately 8,700 SF of fine dining space. Constructed in 2016, the property is presented as a new single-tenant asset with a 10-year lease.
The building is located adjacent to the Chagrin River on Erie Street, off Route 20. Site services include public water and public sewer, and the roof is described as a flat roof.
The property’s listed mechanical systems include forced air heating using natural gas and central air conditioning. An outdoor patio is included, supporting restaurant operations and guest seating.
The building is located adjacent to the Chagrin River on Erie Street, off Route 20. Site services include public water and public sewer, and the roof is described as a flat roof.
The property’s listed mechanical systems include forced air heating using natural gas and central air conditioning. An outdoor patio is included, supporting restaurant operations and guest seating.
Key Highlights
- Approximately 8,700 SF modern two‑story fine dining restaurant building
- Built in 2016 with flat roof
- New single‑tenant asset with a 10‑year lease
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
$93,373
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
3.33%
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%
$1,867,460
$1.9M
Cap Rate 7%
$1,333,900
$1.3M
Cap Rate 9%
$1,037,478
$1.0M
Market Conditions
NOI Build-Up for 8,700 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
$130.5K $15.00/SF
− Vacancy
−$6.0K −$0.69/SF
EGI
$124.5K $14.31/SF
− OpEx
−$31.1K −$3.58/SF
NOI
$93.4K $10.73/SF
Area
Lake County, OH
Vacancy
4.60%
Lease Rate
$15.00 /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%
$1,867,460
Cap Rate 7%
$1,333,900
Cap Rate 9%
$1,037,478
Alternative Uses
Best Use
Specialty Retail
$1.33M
$1.17M – $1.56M
NOI $93,373 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.01M
$1.76M – $2.34M
NOI $140,657 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
753
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 44094, OH
37,634
Population
18,323
Households
2.1
Avg Household Size
46
Median Age
39%
College-Educated
95%
High-School Grad
39.7 sq mi
ZIP Area
948
Density / Sq Mi
$76,125
Median Household Income
$49,393
Median Earnings
$1,155
Median Rent
$247,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Modern two-story restaurant building with central air, patio, and forced-air natural gas heat built in 2016.
Where is this conventional restaurant located?
The property is located at 3941 Erie Street Willoughby, OH.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Approximately 8,700 SF modern two‑story fine dining restaurant building; Built in 2016 with flat roof; New single‑tenant asset with a 10‑year lease
