Two-Tenant Retail Investment with
For Sale
$1,295,000
2625 & 2635 Pacific Ave, Forest Grove, OR 97116
Stabilized two-tenant retail asset with a 2023 re-roof and scheduled lease renewals through 2030.
Property Size3,524 SF
Lot Size0.57 Acres
Days on Market53
Property Features for 2625 & 2635 Pacific Ave
General Information
Standard status
Active
Size
3,524 SF
Lot size
0.57 Acres
Property subtype
Retail
Building Details
Building Size
3,524 SF
Year Built
1950
Listing Agency:
Norris & Stevens
(503) 225-8454
Listed By:
Matt Lyman · License #200807129
Source:
Tcnworldwide
Added: Jun 29
Changed: Aug 17
Last Checked: Aug 19 at 6:15AM
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 Norris & Stevens
Investment Insights
Based on property information with market context.
This for-sale retail property is a stabilized two-tenant investment set on approximately 0.57 acres at a signalized corner. The offering includes documentation supporting future planning, including two MD Architect schematic plans on file. The building was re-roofed approximately in 2023, and a Phase II ESA is on file with asbestos sampling negative, with no additional Phase I required. Ownership has also absorbed approximately $96,000 in architectural and engineering work.
Located at 2625 & 2635 Pacific Ave in Forest Grove, Oregon, the site is positioned at a signalized corner. The property also includes approximately 22,365 square feet of underutilized land on site.
For tenants and buyers looking for an income-generating retail setup, the property’s current leases include renewal dates of November 2027 and December 2030. The combination of a stabilized two-tenant configuration, recent roofing work, and available schematic planning materials may support operators evaluating both current operations and potential site development tied to the underutilized land.
Located at 2625 & 2635 Pacific Ave in Forest Grove, Oregon, the site is positioned at a signalized corner. The property also includes approximately 22,365 square feet of underutilized land on site.
For tenants and buyers looking for an income-generating retail setup, the property’s current leases include renewal dates of November 2027 and December 2030. The combination of a stabilized two-tenant configuration, recent roofing work, and available schematic planning materials may support operators evaluating both current operations and potential site development tied to the underutilized land.
Key Highlights
- Stabilized two‑tenant retail investment on a ±0.57‑acre site at a signalized corner
- Leases scheduled through 2030 with renewal dates of November 2027 and December 2030
- Approx. 22,365 SF underutilized land on site
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
$39,962
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
3.09%
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%
$799,240
$799.2K
Cap Rate 7%
$570,886
$570.9K
Cap Rate 9%
$444,022
$444.0K
Market Conditions
NOI Build-Up for 3,524 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
$63.4K $18.00/SF
− Vacancy
−$6.3K −$1.80/SF
EGI
$57.1K $16.20/SF
− OpEx
−$17.1K −$4.86/SF
NOI
$40.0K $11.34/SF
Area
Washington County, OR
Vacancy
10.00%
Lease Rate
$18.00 /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%
$799,240
Cap Rate 7%
$570,886
Cap Rate 9%
$444,022
Alternative Uses
Best Use
Retail
$570.9K
$499.5K – $666.0K
NOI $39,962 @ 7.0% cap · market cap 3.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$951.2K
$832.3K – $1.11M
NOI $66,585 @ 7.0% cap · market cap 5.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
688
Businesses Nearby
143k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 41%
Groceries 29%
Dining 21%
Apparel 9%
Safeway
Groceries
40,996 visits/mo
0.2 miles
Dollar Tree
Shops & Services
18,834 visits/mo
0.3 miles
Bi-Mart
Shops & Services
15,019 visits/mo
0.5 miles
Dutch Bros. Coffee
Dining
14,309 visits/mo
0.2 miles
Goodwill
Apparel
13,561 visits/mo
0.3 miles
Demographics for 97116, OR
29,351
Population
10,229
Households
2.9
Avg Household Size
36
Median Age
33%
College-Educated
90%
High-School Grad
82.1 sq mi
ZIP Area
358
Density / Sq Mi
$87,308
Median Household Income
$42,330
Median Earnings
$1,397
Median Rent
$479,800
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?
Retail space - Stabilized two-tenant retail asset with a 2023 re-roof and scheduled lease renewals through 2030.
Where is this retail space located?
The property is located at 2625 & 2635 Pacific Ave Forest Grove, OR.
What is the asking price?
The asking price for this property is $1,295,000.
What are key features of this property?
This property features: Stabilized two‑tenant retail investment on a ±0.57‑acre site at a signalized corner; Leases scheduled through 2030 with renewal dates of November 2027 and December 2030; Approx. 22,365 SF underutilized land on site
