Mixed-Use Plaza with
For Sale
$2,550,000
Pending
62910 O.B. Riley Road, Bend, OR 97703
Commercial Sale, Bend, OR
Property Size11,024 SF
Lot Size1.69 Acres
Days on Market25
Property Features for 62910 O.B. Riley Road
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
CG
Parking features
Assigned
Security features
Security System
Window features
Vinyl Frames
Interior features
Smart Thermostat
Subdivision
Norwood
Lot features
Landscaped
View
Territorial
Standard status
Pending
APN
118261
Size
11,024 SF
Lot size
1.69 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
18571
Utilities
Sewer type
Public Sewer
Heating system
Electric (Heating), Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
1999
Floors in Building
2
Number of units
17
Flooring type
Vinyl, Carpet
Building materials
Frame
Roof type
Composition
Listing Agency:
RE/MAX Key Properties · RE/MAX International
(541) 728-0033
Listed By:
Dan C Steelhammer
(541) 306-4948
Added: Aug 13
Changed: Sep 1
Last Checked: Sep 6 at 8:06AM
MLS# 220227015
Copyright © 2026 Oregon Data Share. 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.
McKay Cottage Plaza comprises 11,024 square feet of commercial improvements on 1.69 acres, including the real estate occupied by McKay Cottage Restaurant and two neighboring office buildings. The property also includes an adjoining vacant lot. Originally built in 1999, the improvements feature frame construction, composition roofing, central air, forced-air electric heat, vinyl and carpet flooring, and a smart thermostat. Recent work includes HVAC upgrades along with sealing and striping.
The restaurant operates under a long-term lease and pays its own utilities through a sub-water meter. The office occupants are primarily on two-year leases, providing a mix of lease durations across the property. Public water and public sewer serve the site, and parking is assigned. The APOD reflects a 6.75 CAP based on current rents, historical expenses, and projected tax and insurance increases.
The restaurant operates under a long-term lease and pays its own utilities through a sub-water meter. The office occupants are primarily on two-year leases, providing a mix of lease durations across the property. Public water and public sewer serve the site, and parking is assigned. The APOD reflects a 6.75 CAP based on current rents, historical expenses, and projected tax and insurance increases.
Key Highlights
- 11,024 SF of commercial improvements on 1.69 acres
- Includes a restaurant building, two adjacent office buildings, and a vacant lot
- 6.75 CAP on APOD using current rents and historical expenses
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
$158,311
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
6.21%
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%
$3,166,220
$3.2M
Cap Rate 7%
$2,261,586
$2.3M
Cap Rate 9%
$1,759,011
$1.8M
Market Conditions
NOI Build-Up for 11,024 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
$224.9K $20.40/SF
− Vacancy
−$13.8K −$1.25/SF
EGI
$211.1K $19.15/SF
− OpEx
−$52.8K −$4.79/SF
NOI
$158.3K $14.36/SF
Area
Bend, OR
Vacancy
6.14%
Lease Rate
$20.40 /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%
$3,166,220
Cap Rate 7%
$2,261,586
Cap Rate 9%
$1,759,011
Alternative Uses
Best Use
Specialty Retail
$4.76M
$4.17M – $5.56M
NOI $333,366 @ 7.0% cap · market cap 13.07%
Second Best
Office B
$2.26M
$1.98M – $2.64M
NOI $158,311 @ 7.0% cap · market cap 6.21%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
636
Businesses Nearby
Explore this area
Business Placement
Demographics for 97703, OR
32,475
Population
16,032
Households
2
Avg Household Size
45
Median Age
60%
College-Educated
98%
High-School Grad
269.8 sq mi
ZIP Area
120
Density / Sq Mi
$118,160
Median Household Income
$52,182
Median Earnings
$1,831
Median Rent
$915,900
Median Home Value
Market
Vacancy Rate% for Office in West 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?
Mixed-use property - Restaurant, office, and vacant-lot components create a multi-tenant commercial property with public utilities and assigned parking.
Where is this mixed-use property located?
The property is located at 62910 O.B. Riley Road Bend, OR.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: 11,024 SF of commercial improvements on 1.69 acres; Includes a restaurant building, two adjacent office buildings, and a vacant lot; 6.75 CAP on APOD using current rents and historical expenses
