Historic Restaurant Building with Skylit
For Sale
$1,175,000
112 Cherry Street, Olympia, WA 98501
Steel-reinforced concrete restaurant building with large street and alley-facing windows, skylit dining, kitchen vent hoods, and two HVAC systems.
Property Size5,867 SF
Lot Size0.14 Acres
Price / SF$200.27
Days on Market309
Property Features for 112 Cherry Street
General Information
Standard status
Active
Size
5,867 SF
Lot size
0.14 Acres
Property subtype
General Commercial
Zoning
Retail-Food Downtown Business
Additional Details
Commercial Hood
Yes
Taxes and HOA fees
Annual Taxes
$13,824
Amenities
Central Air
3
Building Details
Year Built
1920
Construction
steel-reinforced concrete
Listing Agency:
Century 21 Van Dorm Realty
(360) 943-3800
Listed By:
Michael Smith · License #85845
Source:
Xome
Added: Oct 5, 2025
Changed: Aug 7
Last Checked: Aug 9 at 4:50AM
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 Century 21 Van Dorm Realty
Investment Insights
Based on property information with market context.
This steel-reinforced concrete restaurant building was built in 1920 and offers 5,867 SF of interior space on a 0.14-acre lot. The layout includes a flexible 50/50 dining and bar arrangement, with a skylit dining area that features remote solar shades. In back, a private banquet/VIP room is supported by a separate alley-side entrance.
The property is equipped with a large kitchen that includes two vent hoods and a dishwasher area with room for a walk-in cooler, along with a spacious bar featuring alley-facing windows, a beverage center, and an ice bin room. Two HVAC systems and a security system are also included. Zoned Retail-Food Downtown Business, the building has large street- and alley-facing windows.
With both street and alley frontage and a dedicated back entrance for the private room, the configuration supports on-premise hospitality use with room for multiple service zones.
The property is equipped with a large kitchen that includes two vent hoods and a dishwasher area with room for a walk-in cooler, along with a spacious bar featuring alley-facing windows, a beverage center, and an ice bin room. Two HVAC systems and a security system are also included. Zoned Retail-Food Downtown Business, the building has large street- and alley-facing windows.
With both street and alley frontage and a dedicated back entrance for the private room, the configuration supports on-premise hospitality use with room for multiple service zones.
Key Highlights
- 5,867 SF steel‑reinforced concrete restaurant building built in 1920 on a 0.14‑acre lot
- Zoned Retail‑Food Downtown Business
- Large street- and alley‑facing windows with skylit dining area and remote solar shades
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
$63,737
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
5.42%
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%
$1,274,740
$1.3M
Cap Rate 7%
$910,529
$910.5K
Cap Rate 9%
$708,189
$708.2K
Market Conditions
NOI Build-Up for 5,867 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
$88.7K $15.12/SF
− Vacancy
−$3.7K −$0.64/SF
EGI
$85.0K $14.48/SF
− OpEx
−$21.2K −$3.62/SF
NOI
$63.7K $10.86/SF
Area
Thurston County, WA
Vacancy
4.20%
Lease Rate
$15.12 /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%
$1,274,740
Cap Rate 7%
$910,529
Cap Rate 9%
$708,189
Alternative Uses
Best Use
Specialty Retail
$910.5K
$796.7K – $1.06M
NOI $63,737 @ 7.0% cap · market cap 5.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.72M
$1.50M – $2.00M
NOI $120,250 @ 7.0% cap · market cap 10.23%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
2,778
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98501, WA
45,274
Population
19,969
Households
2.3
Avg Household Size
40
Median Age
48%
College-Educated
97%
High-School Grad
34.9 sq mi
ZIP Area
1,297
Density / Sq Mi
$95,695
Median Household Income
$55,909
Median Earnings
$1,600
Median Rent
$485,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Steel-reinforced concrete restaurant building with large street and alley-facing windows, skylit dining, kitchen vent hoods, and two HVAC systems.
Where is this conventional restaurant located?
The property is located at 112 Cherry Street Olympia, WA.
What is the asking price?
The asking price for this property is $1,175,000.
What are key features of this property?
This property features: 5,867 SF steel‑reinforced concrete restaurant building built in 1920 on a 0.14‑acre lot; Zoned Retail‑Food Downtown Business; Large street- and alley‑facing windows with skylit dining area and remote solar shades
