Two-Story Restaurant
For Sale
$2,800,000
3941 Erie Street, Willoughby, OH 44094
Single-tenant restaurant property with a 10-year lease and a fine-dining layout.
Property Size8,700 SF
Price / SF$321.84
Days on Market530
Property Features for 3941 Erie Street
General Information
Standard status
Active
Size
8,700 SF
Property subtype
Commercial/Industrial
Occupancy
100%
Site & Location
Highway Access
Yes
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$34,167
Building Details
Year Built
2016
Buildings
1
Stories
2
Tenancy
Single
Listing Agency:
Berkshire Hathaway HomeServices Carolina Premier Properties
(910) 376-0558
Listed By:
Rick Osborne · License #194453
(910) 376-0558
Source:
Exitrealty
Added: Mar 19, 2025
Changed: Aug 30
Last Checked: Aug 30 at 12:55PM
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 Berkshire Hathaway HomeServices Carolina Premier Properties
Investment Insights
Based on property information with market context.
Located at 3941 Erie Street in Willoughby, Ohio, this two-story restaurant building contains 8,700 square feet and was completed in 2016. The improvements were designed for fine-dining use, providing a purpose-built setting for restaurant operations. The property is leased to a single tenant under a 10-year lease.
The building sits near the Chagrin River and a high-traffic intersection on Erie Street, with access from Route 20. Its setting is within historic downtown Willoughby, an area identified for restaurants, bars, shopping, and year-round entertainment and activities.
The building sits near the Chagrin River and a high-traffic intersection on Erie Street, with access from Route 20. Its setting is within historic downtown Willoughby, an area identified for restaurants, bars, shopping, and year-round entertainment and activities.
Key Highlights
- 8,700 SF two‑story restaurant building
- Constructed in 2016 for fine‑dining restaurant use
- Single‑tenant asset with a 10‑year lease
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
$93,373
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
3.33%
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%
$1,867,460
$1.9M
Cap Rate 7%
$1,333,900
$1.3M
Cap Rate 9%
$1,037,478
$1.0M
Market Conditions
NOI Build-Up for 8,700 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
$130.5K $15.00/SF
− Vacancy
−$6.0K −$0.69/SF
EGI
$124.5K $14.31/SF
− OpEx
−$31.1K −$3.58/SF
NOI
$93.4K $10.73/SF
Area
Lake County, OH
Vacancy
4.60%
Lease Rate
$15.00 /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%
$1,867,460
Cap Rate 7%
$1,333,900
Cap Rate 9%
$1,037,478
Alternative Uses
Best Use
Specialty Retail
$1.33M
$1.17M – $1.56M
NOI $93,373 @ 7.0% cap · market cap 3.33%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.01M
$1.76M – $2.34M
NOI $140,657 @ 7.0% cap · market cap 5.02%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
783
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 44094, OH
37,634
Population
18,323
Households
2.1
Avg Household Size
46
Median Age
39%
College-Educated
95%
High-School Grad
39.7 sq mi
ZIP Area
948
Density / Sq Mi
$76,125
Median Household Income
$49,393
Median Earnings
$1,155
Median Rent
$247,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest 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 - Single-tenant restaurant property with a 10-year lease and a fine-dining layout.
Where is this conventional restaurant located?
The property is located at 3941 Erie Street Willoughby, OH.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: 8,700 SF two‑story restaurant building; Constructed in 2016 for fine‑dining restaurant use; Single‑tenant asset with a 10‑year lease
