Versatile Mixed-Use Property in
For Sale
$2,999,999
Pending
3003 Hwy 101, Gearhart, OR 97138
Income-generating property with commercial, residential, and storage spaces.
Property Size19,332 SF
Days on Market930
Property Features for 3003 Hwy 101
General Information
Standard status
Pending
Size
19,332 SF
Taxes and HOA fees
Annual Taxes
$13,578
Building Details
Building Size
19,332 SF
Year Built
1925
Listing Agency:
Berkshire Hathaway HomeServices Northwest Real Estate
Listed By:
Wendy Hemsley · License #OREGON201235010
(503) 292-9393
Source:
Tripleoaksrealty
Added: Feb 26, 2024
Changed: Sep 10
Last Checked: Sep 13 at 3:56AM
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 Berkshire Hathaway HomeServices Northwest Real Estate
Investment Insights
Based on property information with market context.
This versatile property is located in Gearhart, Oregon, with frontage on Highway 101. Zoned C2 for commercial and residential use, the property includes two commercial lease spaces, four residential apartments, and 25 storage units. There are seven income-generating buildings on the property, with potential for additional development. The property has been meticulously maintained and presents a turnkey investment opportunity with a well-established track record, reliable leases, and minimal vacancies over the past thirty years. The property size is 19332 square feet.
Key Highlights
- Prime frontage on Hwy 101 in Gearhart, OR.
- Zoned C2 for commercial/residential use, offering versatile development options.
- Turnkey investment property with seven income‑generating buildings.
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
$149,398
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
4.98%
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%
$2,987,960
$3.0M
Cap Rate 7%
$2,134,257
$2.1M
Cap Rate 9%
$1,659,978
$1.7M
Market Conditions
NOI Build-Up for 19,332 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
$232.0K $12.00/SF
− Vacancy
−$18.6K −$0.96/SF
EGI
$213.4K $11.04/SF
− OpEx
−$64.0K −$3.31/SF
NOI
$149.4K $7.73/SF
Area
Clatsop County, OR
Vacancy
8.00%
Lease Rate
$12.00 /SF/Yr
Expense Ratio
30.00%
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%
$2,987,960
Cap Rate 7%
$2,134,257
Cap Rate 9%
$1,659,978
Alternative Uses
Best Use
Self Storage
$2.13M
$1.87M – $2.49M
NOI $149,398 @ 7.0% cap · market cap 4.98%
Second Best
Mixed Use
$1.82M
$1.59M – $2.13M
NOI $127,591 @ 7.0% cap · market cap 4.25%
Theoretical Best
Office A
$5.62M
$4.92M – $6.56M
NOI $393,445 @ 7.0% cap · market cap 13.11%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
291
Businesses Nearby
Explore this area
Business Placement
Demographics for 97138, OR
11,248
Population
7,785
Households
1.4
Avg Household Size
48
Median Age
28%
College-Educated
92%
High-School Grad
146.0 sq mi
ZIP Area
77
Density / Sq Mi
$51,993
Median Household Income
$39,285
Median Earnings
$1,004
Median Rent
$433,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Industrial in West region
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Income-generating property with commercial, residential, and storage spaces.
Where is this mixed-use property located?
The property is located at 3003 Hwy 101 Gearhart, OR.
What is the asking price?
The asking price for this property is $2,999,999.
What are key features of this property?
This property features: Prime frontage on Hwy 101 in Gearhart, OR.; Zoned C2 for commercial/residential use, offering versatile development options.; Turnkey investment property with seven income‑generating buildings.
