Building Details

Year built 1971

Listing Agency: NextHome Haven Properties Show Phone

Listed By: Carlotta Diaz Show Phone

Added: Aug 21 Last Checked: Aug 23 at 6:06AM

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MLS# 226105406

Copyright © 2026 NextHome, Inc. 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.

This single-story restaurant property includes 7832 square feet of building area on a 5.07-acre parcel. Constructed in 1971, the building was originally developed for restaurant use and includes a complete package of restaurant equipment. Guest seating accommodates 110+ people, while the site provides 25+ parking spaces.

The property is located at 4070 County Road 89 in Dunnigan, an unincorporated Yolo County community along the Interstate 5 corridor. Its setting places the restaurant between Woodland and Williams, with the parcel and existing improvements suited to continued restaurant operations.

Key Highlights

• 7832‑square‑foot single‑story restaurant building
• 5.07‑acre parcel in Dunnigan, CA
• 25+ on‑site parking spaces

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

$121,898

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

3.58%

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%

$2,437,960 $2.4M

Cap Rate 7%

$1,741,400 $1.7M

Cap Rate 9%

$1,354,422 $1.4M

Market Conditions

NOI Build-Up for 7,832 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

$172.0K $21.96/SF

− Vacancy

−$9.5K −$1.21/SF

EGI

$162.5K $20.75/SF

− OpEx

−$40.6K −$5.19/SF

NOI

$121.9K $15.56/SF

Area

Yolo County, CA

Vacancy

5.50%

Lease Rate

$21.96 /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%

$2,437,960

Cap Rate 7%

$1,741,400

Cap Rate 9%

$1,354,422

Alternative Uses

Best Use

Specialty Retail

$1.74M

$1.52M – $2.03M (±1% cap)

NOI $121,898 @ 7.0% cap · market cap 3.58%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$2.11M

$1.85M – $2.47M (±1% cap)

NOI $147,931 @ 7.0% cap · market cap 4.35%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Lease Details

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

80

Businesses Nearby

Explore this area Business Placement

Demographics for 95937, CA

1,554

Population

489

Households

3.2

Avg Household Size

42

Median Age

32%

College-Educated

76%

High-School Grad

53.2 sq mi

ZIP Area

29

Density / Sq Mi

$46,650

Median Household Income

$683

Median Rent

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - Restaurant improvements include on-site parking, commercial kitchen equipment, and seating for more than 110 guests.

Where is this conventional restaurant located?

The property is located at 4070 County Road 89 Dunnigan, CA.

What is the asking price?

The asking price for this property is $3,400,500.

What are key features of this property?

This property features: 7832‑square‑foot single‑story restaurant building; 5.07‑acre parcel in Dunnigan, CA; 25+ on‑site parking spaces