Iconic Restaurant in Historic
For Sale
$1,250,000
116 W Ramsey St, Banning, CA 92220
Long-standing restaurant in prime location with revitalization project upcoming.
Property Size3,026 SF
Lot Size0.10 Acres
Price / SF$312.50
Days on Market152
Property Features for 116 W Ramsey St
General Information
Standard status
Active
Size
3,026 SF
Lot size
0.10 Acres
Property subtype
Commercial
Building Details
Building Size
3,026 SF
Year Built
1936
Listing Agency:
Berkshire Hathaway Homeservices California Realty
(951) 533-7525
Listed By:
VINOD DESAR · License #01753823
(951) 533-7525
Source:
Elliman
Added: Mar 10
Changed: Aug 8
Last Checked: Aug 8 at 12:35PM
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 Berkshire Hathaway Homeservices California Realty
Investment Insights
Based on property information with market context.
This iconic Chinese Food Restaurant, a staple in the heart of Historic Downtown Banning for over 37 years, presents an extraordinary opportunity. The establishment benefits from a prime location within walking distance of City Hall, Courthouse, Police Department, shops, and restaurants, ensuring maximum visibility and customer reach with heavy vehicle and foot traffic. The location is slated to be the epicenter for the New Downtown Revitalization Project, with construction scheduled to start soon. The beautifully maintained commercial building spans approximately 4000 sq ft, providing ample space for both dining and kitchen operations. The kitchen is equipped with well-maintained appliances, including a wash station, storage room, walk-in freezer, and prep station. A strategically placed sign ensures high visibility, creating a strong presence in the community. The well-planned layout features meticulously maintained booths, tables, and chairs, contributing to the overall ambiance of the dining space. With over five decades of operation, this restaurant carries a legacy and reputation for delivering delicious Chinese cuisine. The property's versatility allows for continued use as a Chinese restaurant or the opportunity to introduce a new culinary concept.
Key Highlights
- Prime location in Historic Downtown Banning with high visibility and foot traffic.
- Epicenter of the New Downtown Revitalization Project.
- Long‑standing restaurant with a 37+ year history and established reputation.
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
$50,436
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
4.03%
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%
$1,008,720
$1.0M
Cap Rate 7%
$720,514
$720.5K
Cap Rate 9%
$560,400
$560.4K
Market Conditions
NOI Build-Up for 4,000 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
$72.0K $18.00/SF
− Vacancy
−$4.8K −$1.19/SF
EGI
$67.2K $16.81/SF
− OpEx
−$16.8K −$4.20/SF
NOI
$50.4K $12.61/SF
Area
Riverside County, CA
Vacancy
6.60%
Lease Rate
$18.00 /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%
$1,008,720
Cap Rate 7%
$720,514
Cap Rate 9%
$560,400
Alternative Uses
Best Use
Specialty Retail
$720.5K
$630.5K – $840.6K
NOI $50,436 @ 7.0% cap · market cap 4.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,883 @ 7.0% cap · market cap 6.71%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
601
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 92220, CA
32,947
Population
13,258
Households
2.5
Avg Household Size
43
Median Age
17%
College-Educated
82%
High-School Grad
141.3 sq mi
ZIP Area
233
Density / Sq Mi
$59,116
Median Household Income
$35,428
Median Earnings
$1,499
Median Rent
$324,800
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 - Long-standing restaurant in prime location with revitalization project upcoming.
Where is this conventional restaurant located?
The property is located at 116 W Ramsey St Banning, CA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Prime location in Historic Downtown Banning with high visibility and foot traffic.; Epicenter of the New Downtown Revitalization Project.; Long‑standing restaurant with a 37+ year history and established reputation.
