Freestanding Restaurant Building For
For Sale
Contact for pricing
Pending
125 Ponderosa Dr, Sutherlin, OR 97479
4,750 SF commercial restaurant building on nearly one acre.
Property Size4,750 SF
Lot Size1.00 Acre
Days on Market175
Property Features for 125 Ponderosa Dr
General Information
Standard status
Pending
Size
4,750 SF
Lot size
1.00 Acre
Property subtype
Industrial
Zoning
C3
Building Details
Year Built
1999
Listing Agency:
Keller Williams Southern Oregon Umpqua Valley
(541) 529-2320
Listed By:
Mary Gilbert · License #OR 951100030
Source:
Crexi
Added: Feb 17
Changed: Aug 8
Last Checked: Jul 24 at 9:25AM
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 Keller Williams Southern Oregon Umpqua Valley
Investment Insights
Based on property information with market context.
This 4,750± SF freestanding commercial restaurant building is positioned on nearly one acre in a high-traffic location directly off Interstate 5. Formerly home to the Apple Peddler Restaurant, the property offers regional exposure, parking, and built-out restaurant infrastructure. The location is adjacent to Microtel Hotel, Burger King, and a fuel station. The large lot provides car and truck parking. The building offers existing restaurant equipment and commercial kitchen infrastructure. The layout is suited for dine-in service, takeout, and delivery. The property offers flexibility for alternative commercial conversions, including medical, dental, or urgent care clinic, brewery, taproom, or tasting room, retail showroom or specialty market, fitness, wellness, or training facility, office or service-based business, food hall, ghost kitchen, or catering hub, or redevelopment for mixed commercial uses. This property is positioned along the West Coast I-5 corridor.
Key Highlights
- Prime I‑5 location with high visibility and accessibility
- Existing restaurant infrastructure allows for faster and more cost‑effective reopening
- Large lot with abundant car and truck parking
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
$57,548
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
4.60%
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%
$1,150,960
$1.2M
Cap Rate 7%
$822,114
$822.1K
Cap Rate 9%
$639,422
$639.4K
Market Conditions
NOI Build-Up for 4,750 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
$80.9K $17.04/SF
− Vacancy
−$4.2K −$0.89/SF
EGI
$76.7K $16.15/SF
− OpEx
−$19.2K −$4.04/SF
NOI
$57.5K $12.12/SF
Area
Douglas County, OR
Vacancy
5.20%
Lease Rate
$17.04 /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%
$1,150,960
Cap Rate 7%
$822,114
Cap Rate 9%
$639,422
Alternative Uses
Best Use
Specialty Retail
$822.1K
$719.4K – $959.1K
NOI $57,548 @ 7.0% cap · market cap 4.60%
Second Best
Retail
$808.0K
$707.0K – $942.6K
NOI $56,558 @ 7.0% cap · market cap 4.52%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
207
Businesses Nearby
137k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 65%
Shops & Services 27%
Home Improvements & Furnishings 6%
Hotels & Casinos 2%
McDonald's
Dining
24,063 visits/mo
0.2 miles
Dutch Bros. Coffee
Dining
17,145 visits/mo
0.2 miles
Taco Bell
Dining
14,382 visits/mo
0.3 miles
Starbucks
Dining
14,253 visits/mo
0.2 miles
Chevron
Shops & Services
13,652 visits/mo
0.1 miles
Demographics for 97479, OR
10,161
Population
4,759
Households
2.1
Avg Household Size
47
Median Age
15%
College-Educated
94%
High-School Grad
67.5 sq mi
ZIP Area
151
Density / Sq Mi
$56,493
Median Household Income
$36,867
Median Earnings
$1,207
Median Rent
$281,500
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 - 4,750 SF commercial restaurant building on nearly one acre.
Where is this conventional restaurant located?
The property is located at 125 Ponderosa Dr Sutherlin, OR.
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 I‑5 location with high visibility and accessibility; Existing restaurant infrastructure allows for faster and more cost‑effective reopening; Large lot with abundant car and truck parking
