Montavilla Mixed-Use Redevelopment
For Sale
$820,000
8523 SE STARK, Portland, OR 97216
CM2 zoned land for redevelopment in established East Portland corridor.
Property Size2,729 SF
Lot Size0.29 Acres
Price / SF$300.48
Days on Market576
Property Features for 8523 SE STARK
General Information
Standard status
Active
Size
2,729 SF
Lot size
0.29 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$10,371
Amenities
Composition Roof
Forced Air Heating
Off Street
Building Details
Year Built
1937
Listing Agency:
ROSE COUNTRY REALTY
(503) 894-8989
Listed By:
ANNIE WRUCKE · License #960800173
Source:
Corcoran
Added: Jan 13, 2025
Changed: Aug 8
Last Checked: Aug 8 at 6:04AM
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 ROSE COUNTRY REALTY
Investment Insights
Based on property information with market context.
This offering presents a CM2 mixed-use redevelopment opportunity in Montavilla, comprising two parcels situated on a corner site with dual access points. The zoning supports a range of commercial and mixed-use development concepts, including residential units and retail/residential combinations, subject to buyer verification. The property is marketed primarily for its land value and future development potential. Existing improvements are present. A billboard lease is currently in place. Utilities are available at the street, although the gas meter has been removed. The property benefits from visibility and access near major arterials and freeway routes, offering long-term redevelopment potential within an established East Portland corridor. The seller may consider partial seller carry financing, subject to terms.
Key Highlights
- Prime CM2 mixed‑use redevelopment opportunity in Montavilla.
- Two parcels on a prominent corner site with dual access points.
- Zoning supports diverse commercial and mixed‑use development (residential, retail/residential).
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
$36,842
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
4.49%
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%
$736,840
$736.8K
Cap Rate 7%
$526,314
$526.3K
Cap Rate 9%
$409,356
$409.4K
Market Conditions
NOI Build-Up for 2,729 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
$65.5K $24.00/SF
− Vacancy
−$6.5K −$2.40/SF
EGI
$58.9K $21.60/SF
− OpEx
−$22.1K −$8.10/SF
NOI
$36.8K $13.50/SF
Area
Portland, OR
Vacancy
10.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
37.50%
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%
$736,840
Cap Rate 7%
$526,314
Cap Rate 9%
$409,356
Alternative Uses
Best Use
Mixed Use
$526.3K
$460.5K – $614.0K
NOI $36,842 @ 7.0% cap · market cap 4.49%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$766.4K
$670.6K – $894.1K
NOI $53,646 @ 7.0% cap · market cap 6.54%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,089
Businesses Nearby
Explore this area
Business Placement
Demographics for 97216, OR
17,488
Population
7,235
Households
2.4
Avg Household Size
39
Median Age
33%
College-Educated
90%
High-School Grad
2.5 sq mi
ZIP Area
6,995
Density / Sq Mi
$71,951
Median Household Income
$42,537
Median Earnings
$1,390
Median Rent
$439,000
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Commercial land - CM2 zoned land for redevelopment in established East Portland corridor.
Where is this commercial land located?
The property is located at 8523 SE STARK Portland, OR.
What is the asking price?
The asking price for this property is $820,000.
What are key features of this property?
This property features: Prime CM2 mixed‑use redevelopment opportunity in Montavilla.; Two parcels on a prominent corner site with dual access points.; Zoning supports diverse commercial and mixed‑use development (residential, retail/residential).
