Restaurant Building with Private
For Sale
Contact for pricing
1020 Oroville Ave, Chico, CA 95928
Recent improvements include refreshed finishes, upgraded lighting, and a new roof.
Property Size2,000 SF
Price / SF$195
Days on Market145
Property Features for 1020 Oroville Ave
General Information
Standard status
Active
Size
2,000 SF
Total Parking Spaces
10
Property subtype
Retail
Zoning
DS - Downtown South
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Stabilized
Net Operating Income
$29,515
Additional Details
Patio
Yes
Building Details
Year Built
1945
Year Renovated
2025
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Harris Commercial
(530) 419-1600
Listed By:
Brandon Harris · License #01318261
Source:
Crexi
Added: Apr 10
Changed: Aug 30
Last Checked: Aug 30 at 2:25PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Harris Commercial
Investment Insights
Based on property information with market context.
This 2,000 SF restaurant building in downtown Chico dates to 1945 and is leased to Carnitas El Rincon, a 22-unit Mexican restaurant operator. Lease commencement is May 1, 2025, with annual rent increases built into the 5-year term. The property includes a rear patio and storage area, along with a large private parking lot that supports the restaurant use.
Recent work includes new interior and exterior paint, updated flooring, upgraded lighting, a new electrical panel, and a new roof with warranty. The property is zoned DS - Downtown South. Under the lease structure, the landlord remains responsible for the roof, foundation, and structural components, while the tenant handles utilities and routine premises and mechanical maintenance.
Recent work includes new interior and exterior paint, updated flooring, upgraded lighting, a new electrical panel, and a new roof with warranty. The property is zoned DS - Downtown South. Under the lease structure, the landlord remains responsible for the roof, foundation, and structural components, while the tenant handles utilities and routine premises and mechanical maintenance.
Key Highlights
- 2,000 SF restaurant building constructed in 1945
- Leased to Carnitas El Rincon, a 22‑unit Mexican restaurant operator
- 5‑year lease commencing May 1, 2025, with set annual rent increases
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
$26,508
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
6.80%
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%
$530,160
$530.2K
Cap Rate 7%
$378,686
$378.7K
Cap Rate 9%
$294,533
$294.5K
Market Conditions
NOI Build-Up for 2,000 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
$37.4K $18.72/SF
− Vacancy
−$2.1K −$1.05/SF
EGI
$35.3K $17.67/SF
− OpEx
−$8.8K −$4.42/SF
NOI
$26.5K $13.25/SF
Area
Chico, CA
Vacancy
5.60%
Lease Rate
$18.72 /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%
$530,160
Cap Rate 7%
$378,686
Cap Rate 9%
$294,533
Alternative Uses
Best Use
Specialty Retail
$378.7K
$331.4K – $441.8K
NOI $26,508 @ 7.0% cap · market cap 6.80%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$403.8K
$353.3K – $471.1K
NOI $28,267 @ 7.0% cap · market cap 7.25%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,724
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95928, CA
38,378
Population
17,455
Households
2.2
Avg Household Size
35
Median Age
41%
College-Educated
90%
High-School Grad
145.4 sq mi
ZIP Area
264
Density / Sq Mi
$65,350
Median Household Income
$32,615
Median Earnings
$1,419
Median Rent
$476,600
Median Home Value
Market
Vacancy Rate% for Retail 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?
Conventional restaurant - Recent improvements include refreshed finishes, upgraded lighting, and a new roof.
Where is this conventional restaurant located?
The property is located at 1020 Oroville Ave Chico, CA.
What is the asking price?
The asking price for this property is $390,000.
What are key features of this property?
This property features: 2,000 SF restaurant building constructed in 1945; Leased to Carnitas El Rincon, a 22‑unit Mexican restaurant operator; 5‑year lease commencing May 1, 2025, with set annual rent increases
