Turnkey Restaurant Redevelopment
For Sale
$1,199,995
10711 NE HALSEY, Portland, OR 97220
Freestanding second-generation restaurant building with existing kitchen equipment, parking, and CM2 zoning for flexible use.
Property Size3,215 SF
Price / SF$373.25
Days on Market56
Property Features for 10711 NE HALSEY
General Information
Standard status
Active
Size
3,215 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$15,068
Amenities
Central air
Central Air Cooling
Forced Air Heating
On Site
Paved
Building Details
Year Built
1979
Listing Agency:
LUXE FORBES GLOBAL PROPERTIES
(503) 389-2112
Listed By:
VINCE CORTESE
Source:
Corcoran
Added: Jun 18
Changed: Aug 10
Last Checked: Aug 11 at 7:56AM
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 LUXE FORBES GLOBAL PROPERTIES
Investment Insights
Based on property information with market context.
Built in 1967, this single-tenant Class B freestanding retail building offers a turnkey second-generation restaurant space of approximately 3,124 square feet. The property is being presented with existing restaurant equipment and infrastructure in place, supporting an owner-operator or qualified user looking to open with less downtime. The site sits on a 0.46-acre parcel and includes 16 parking spaces to accommodate customer traffic.
The building is located at the intersection of NE Halsey St and NE 106th Ave, providing dual street access and prominent signage opportunities on both corridors. The area offers strong regional connectivity, with immediate proximity to I-205 and I-84 and easy access to the Gateway Transit Center. Kaiser Permanente Gateway Medical Office is also minutes away, providing nearby daytime demand.
Zoned CM2, the property supports a wide range of commercial uses and also provides for medium-density residential development. This combination of an operational restaurant configuration, dedicated parking, and CM2 flexibility makes the asset suitable for buyers evaluating either continued restaurant use or redevelopment options within a neighborhood retail corridor.
The building is located at the intersection of NE Halsey St and NE 106th Ave, providing dual street access and prominent signage opportunities on both corridors. The area offers strong regional connectivity, with immediate proximity to I-205 and I-84 and easy access to the Gateway Transit Center. Kaiser Permanente Gateway Medical Office is also minutes away, providing nearby daytime demand.
Zoned CM2, the property supports a wide range of commercial uses and also provides for medium-density residential development. This combination of an operational restaurant configuration, dedicated parking, and CM2 flexibility makes the asset suitable for buyers evaluating either continued restaurant use or redevelopment options within a neighborhood retail corridor.
Key Highlights
- 3,124 SF freestanding retail building, single‑tenant, built in 1979 (formerly Kings Omelets Restaurant)
- Second‑generation restaurant space with existing kitchen equipment and infrastructure
- 0.46‑acre lot with dual street access at the intersection of NE Halsey St and NE 106th Ave, plus prominent signage on both corridors
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
$43,287
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
3.61%
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%
$865,740
$865.7K
Cap Rate 7%
$618,386
$618.4K
Cap Rate 9%
$480,967
$481.0K
Market Conditions
NOI Build-Up for 3,215 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
$61.7K $19.20/SF
− Vacancy
−$4.0K −$1.25/SF
EGI
$57.7K $17.95/SF
− OpEx
−$14.4K −$4.49/SF
NOI
$43.3K $13.46/SF
Area
Portland, OR
Vacancy
6.50%
Lease Rate
$19.20 /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%
$865,740
Cap Rate 7%
$618,386
Cap Rate 9%
$480,967
Alternative Uses
Best Use
Specialty Retail
$618.4K
$541.1K – $721.5K
NOI $43,287 @ 7.0% cap · market cap 3.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$902.9K
$790.0K – $1.05M
NOI $63,200 @ 7.0% cap · market cap 5.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,207
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97220, OR
29,357
Population
12,177
Households
2.4
Avg Household Size
39
Median Age
35%
College-Educated
88%
High-School Grad
7.5 sq mi
ZIP Area
3,914
Density / Sq Mi
$68,976
Median Household Income
$41,696
Median Earnings
$1,412
Median Rent
$427,700
Median Home Value
Market
Vacancy Rate% for Retail in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Freestanding second-generation restaurant building with existing kitchen equipment, parking, and CM2 zoning for flexible use.
Where is this conventional restaurant located?
The property is located at 10711 NE HALSEY Portland, OR.
What is the asking price?
The asking price for this property is $1,199,995.
What are key features of this property?
This property features: 3,124 SF freestanding retail building, single‑tenant, built in 1979 (formerly Kings Omelets Restaurant); Second‑generation restaurant space with existing kitchen equipment and infrastructure; 0.46‑acre lot with dual street access at the intersection of NE Halsey St and NE 106th Ave, plus prominent signage on both corridors
