Remodeled Freestanding
For Sale
$1,800,000
3200 Clearwater Ave, Kennewick, WA 99336
Fully equipped restaurant with flexible dining space, private parking, multiple entrances, and dedicated administrative space.
Property Size5,018 SF
Price / SF$358.71
Days on Market518
Property Features for 3200 Clearwater Ave
General Information
Standard status
Active
Size
5,018 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$2,024
Amenities
3
Parking.
51-100 Spaces.
40946.3984375
In City.
Building Details
Year Built
1977
Listing Agency:
Windermere Group One/Tri-Cities
(509) 438-7515
Listed By:
Dan Hansen · License #117293
(509) 438-7515
Source:
Xome
Added: Apr 2, 2025
Changed: Aug 31
Last Checked: Aug 31 at 1:25PM
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 Windermere Group One/Tri-Cities
Investment Insights
Based on property information with market context.
This 5,018 SF freestanding restaurant includes a clear-span dining area, two private restrooms, and a dedicated office for management or administrative functions. The building was taken down to the studs and fully remodeled in 2008. Kitchen equipment, furniture, and fixtures convey with the property, supporting continued restaurant use without removing the existing operational infrastructure.
The nearly one-acre site is located at 3200 W Clearwater Ave in Kennewick, near the intersection with State Route 395. It provides 51 private parking spaces and three separate entry points. The surrounding area includes established neighborhoods, commercial properties, gyms, office buildings, event centers, shopping malls, and hotels.
The nearly one-acre site is located at 3200 W Clearwater Ave in Kennewick, near the intersection with State Route 395. It provides 51 private parking spaces and three separate entry points. The surrounding area includes established neighborhoods, commercial properties, gyms, office buildings, event centers, shopping malls, and hotels.
Key Highlights
- 5,018 SF restaurant building on nearly one acre
- Fully remodeled in 2008 after being taken down to the studs
- 51 private parking spaces and 3 separate entry points
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
$77,308
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
4.29%
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%
$1,546,160
$1.5M
Cap Rate 7%
$1,104,400
$1.1M
Cap Rate 9%
$858,978
$859.0K
Market Conditions
NOI Build-Up for 5,018 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
$108.4K $21.60/SF
− Vacancy
−$5.3K −$1.06/SF
EGI
$103.1K $20.54/SF
− OpEx
−$25.8K −$5.14/SF
NOI
$77.3K $15.41/SF
Area
Benton County, WA
Vacancy
4.90%
Lease Rate
$21.60 /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%
$1,546,160
Cap Rate 7%
$1,104,400
Cap Rate 9%
$858,978
Alternative Uses
Best Use
Specialty Retail
$1.10M
$966.4K – $1.29M
NOI $77,308 @ 7.0% cap · market cap 4.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.39M
$1.22M – $1.62M
NOI $97,427 @ 7.0% cap · market cap 5.41%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,115
Businesses Nearby
343k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 61%
Shops & Services 22%
Superstores 5%
Home Improvements & Furnishings 4%
McDonald's
Dining
44,972 visits/mo
0.4 miles
Dollar Tree
Shops & Services
32,563 visits/mo
0.3 miles
Panda Express
Dining
25,177 visits/mo
0.3 miles
Taco Bell
Dining
22,901 visits/mo
0.3 miles
Dutch Bros. Coffee
Dining
19,810 visits/mo
0.4 miles
Demographics for 99336, WA
51,127
Population
20,915
Households
2.4
Avg Household Size
33
Median Age
21%
College-Educated
85%
High-School Grad
13.4 sq mi
ZIP Area
3,815
Density / Sq Mi
$63,308
Median Household Income
$38,211
Median Earnings
$1,155
Median Rent
$292,300
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Fully equipped restaurant with flexible dining space, private parking, multiple entrances, and dedicated administrative space.
Where is this conventional restaurant located?
The property is located at 3200 Clearwater Ave Kennewick, WA.
What is the asking price?
The asking price for this property is $1,800,000.
What are key features of this property?
This property features: 5,018 SF restaurant building on nearly one acre; Fully remodeled in 2008 after being taken down to the studs; 51 private parking spaces and 3 separate entry points
