Freestanding Restaurant Near East
For Sale
$1,500,000
4614 East Washington Avenue, Madison, WI 53704
Freestanding restaurant on 0.60 acre lot with high visibility.
Property Size3,872 SF
Lot Size0.60 Acres
Price / SF$387.40
Days on Market140
Property Features for 4614 East Washington Avenue
General Information
Standard status
Active
Size
3,872 SF
Lot size
0.60 Acres
Property subtype
Retail
Listing Agency:
CBRE, Inc.
(414) 274-1690
Listed By:
Nathan Powers
(414) 274-1690
Source:
Cbre
Added: Mar 25
Changed: Jul 6
Last Checked: Aug 11 at 2:36PM
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 CBRE, Inc.
Investment Insights
Based on property information with market context.
This is a unique opportunity to own a freestanding restaurant situated on a 0.60 acre lot with high visibility. The property is located across from East Towne Mall on the east side of Madison. The surrounding area includes national tenants such as Chipotle, Chick-fil-A, Portillo’s, Starbucks, McDonald’s, and Texas Roadhouse. The property benefits from its location at a fully lighted intersection, providing full access onto both E Washington Avenue and Zeier Road. East Washington Avenue sees a traffic volume of 38,700 vehicles per day. The property includes pylon signage and 38 parking stalls. The building size is 3,872 square feet. The property is suitable for conventional restaurant use.
Key Highlights
- Highly visible 0.60 acre lot across from East Towne Mall
- Located at a fully lighted intersection with full access onto E Washington Avenue (38,700 VPD) and Zeier Road
- Freestanding restaurant property
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
$62,901
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
4.19%
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%
$1,258,020
$1.3M
Cap Rate 7%
$898,586
$898.6K
Cap Rate 9%
$698,900
$698.9K
Market Conditions
NOI Build-Up for 3,872 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
$88.3K $22.80/SF
− Vacancy
−$4.4K −$1.14/SF
EGI
$83.9K $21.66/SF
− OpEx
−$21.0K −$5.42/SF
NOI
$62.9K $16.25/SF
Area
Madison, WI
Vacancy
5.00%
Lease Rate
$22.80 /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%
$1,258,020
Cap Rate 7%
$898,586
Cap Rate 9%
$698,900
Alternative Uses
Best Use
Specialty Retail
$898.6K
$786.3K – $1.05M
NOI $62,901 @ 7.0% cap · market cap 4.19%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.13M
$989.7K – $1.32M
NOI $79,175 @ 7.0% cap · market cap 5.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
466
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53704, WI
47,066
Population
22,740
Households
2.1
Avg Household Size
38
Median Age
49%
College-Educated
96%
High-School Grad
21.9 sq mi
ZIP Area
2,149
Density / Sq Mi
$75,007
Median Household Income
$47,665
Median Earnings
$1,231
Median Rent
$289,000
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Freestanding restaurant on 0.60 acre lot with high visibility.
Where is this conventional restaurant located?
The property is located at 4614 East Washington Avenue Madison, WI.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Highly visible 0.60 acre lot across from East Towne Mall; Located at a fully lighted intersection with full access onto E Washington Avenue (38,700 VPD) and Zeier Road; Freestanding restaurant property
