Restaurant Building with
For Sale
$895,000
131 Broadway Street, Chico, CA 95928
Restaurant property with commercial kitchen infrastructure, basement support areas, and an outdoor dining patio in downtown Chico.
Property Size2,640 SF
Price / SF$339.02
Days on Market465
Property Features for 131 Broadway Street
General Information
Standard status
Active
Size
2,640 SF
Property subtype
Retail
Restaurant
Commercial Hood
Yes
Patio
Yes
Amenities
3
Public Transport.
Building Details
Year Built
1925
Buildings
1
Construction
clear span
Listing Agency:
Harris Commercial
(530) 419-1600
Listed By:
Harris Commercial Real Estate · License #02002193
Source:
Xome
Added: May 23, 2025
Changed: Aug 30
Last Checked: Aug 30 at 2:26PM
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 Harris Commercial
Investment Insights
Based on property information with market context.
This conventional restaurant property at 131 Broadway Street includes a main dining level, commercial kitchen, basement, and rear patio. The approximately 2,640 SF primary floor features tall ceilings, original exposed brick, hardwood flooring, skylights, an open kitchen, walk-up cashier counter, and self-service beverage station. Kitchen infrastructure includes a 12-foot hood with Ansul fire suppression, prep space, and a walk-in refrigerator in the lower level.
The approximately 1,800 SF basement provides employee locker space, an office area, mechanical room, storage, delivery access through a sidewalk hatch, and utility modification capability. Outdoor dining is supported by an approximately 1,700 SF rear patio. The 1925 building sits between 1st and 2nd Streets in Downtown Chico, approximately one-half block from California State University, Chico, and near restaurants, bars, and shops.
The approximately 1,800 SF basement provides employee locker space, an office area, mechanical room, storage, delivery access through a sidewalk hatch, and utility modification capability. Outdoor dining is supported by an approximately 1,700 SF rear patio. The 1925 building sits between 1st and 2nd Streets in Downtown Chico, approximately one-half block from California State University, Chico, and near restaurants, bars, and shops.
Key Highlights
- Approximately 2,640 SF main restaurant level with tall ceilings, exposed brick, hardwood flooring, and skylights
- 12‑foot kitchen hood with Ansul fire suppression, prep area, cashier counter, and beverage station
- Approximately 1,700 SF rear patio for outdoor dining
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
$34,990
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
3.91%
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%
$699,800
$699.8K
Cap Rate 7%
$499,857
$499.9K
Cap Rate 9%
$388,778
$388.8K
Market Conditions
NOI Build-Up for 2,640 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
$49.4K $18.72/SF
− Vacancy
−$2.8K −$1.05/SF
EGI
$46.7K $17.67/SF
− OpEx
−$11.7K −$4.42/SF
NOI
$35.0K $13.25/SF
Area
Chico, CA
Vacancy
5.60%
Lease Rate
$18.72 /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%
$699,800
Cap Rate 7%
$499,857
Cap Rate 9%
$388,778
Alternative Uses
Best Use
Specialty Retail
$499.9K
$437.4K – $583.2K
NOI $34,990 @ 7.0% cap · market cap 3.91%
Second Best
Retail
$466.5K
$408.2K – $544.3K
NOI $32,657 @ 7.0% cap · market cap 3.65%
Theoretical Best
Office A
$533.0K
$466.4K – $621.9K
NOI $37,312 @ 7.0% cap · market cap 4.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
2,083
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 95928, CA
38,378
Population
17,455
Households
2.2
Avg Household Size
35
Median Age
41%
College-Educated
90%
High-School Grad
145.4 sq mi
ZIP Area
264
Density / Sq Mi
$65,350
Median Household Income
$32,615
Median Earnings
$1,419
Median Rent
$476,600
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 - Restaurant property with commercial kitchen infrastructure, basement support areas, and an outdoor dining patio in downtown Chico.
Where is this conventional restaurant located?
The property is located at 131 Broadway Street Chico, CA.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: Approximately 2,640 SF main restaurant level with tall ceilings, exposed brick, hardwood flooring, and skylights; 12‑foot kitchen hood with Ansul fire suppression, prep area, cashier counter, and beverage station; Approximately 1,700 SF rear patio for outdoor dining
