Restaurant
New
For Sale
$2,400,000
4344 E Towne Blvd, Madison, WI 53704
Former restaurant building across from East Towne Mall with owner-user or redevelopment potential.
Property Size5,632 SF
Days on Market2
Property Features for 4344 E Towne Blvd
General Information
Standard status
Active
Size
5,632 SF
Property subtype
Commercial
Additional Details
Traffic Count
45,000 vehicles/day
Building Details
Building Size
5,632 SF
Year Built
1978
Listing Agency:
Matthews Real Estate Investment Services - Orange County
Listed By:
Connor Olandt · License #01985082 (CA)
(949) 432-4504
Source:
Matthews
Added: Sep 16
Last Checked: Sep 16 at 2:24PM
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 Matthews Real Estate Investment Services - Orange County
Investment Insights
Based on property information with market context.
Built in 1978, this restaurant property formerly operated as Chili’s and is positioned for an owner-user or redevelopment plan. The asset is located at 4344 E Towne Blvd in Madison, Wisconsin, directly across from East Towne Mall and within a commercial corridor that includes Target, Aldi, The Home Depot, McDonald’s, Chipotle, and other national restaurant and retail operators.
The property is exposed to more than 45,000 cars per day, with over 127,000 people residing within a 5-mile radius. The surrounding area also includes the planned redevelopment of East Towne Mall, described as a 100+ acre mixed-use project. Dane County Regional Airport and the Wisconsin Army National Guard Pearson Military Base are a few minutes away.
The property is exposed to more than 45,000 cars per day, with over 127,000 people residing within a 5-mile radius. The surrounding area also includes the planned redevelopment of East Towne Mall, described as a 100+ acre mixed-use project. Dane County Regional Airport and the Wisconsin Army National Guard Pearson Military Base are a few minutes away.
Key Highlights
- Former Chili’s restaurant property built in 1978
- Across from East Towne Mall in Madison, WI
- More than 45,000 cars per day pass the property
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
$91,492
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
3.81%
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%
$1,829,840
$1.8M
Cap Rate 7%
$1,307,029
$1.3M
Cap Rate 9%
$1,016,578
$1.0M
Market Conditions
NOI Build-Up for 5,632 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
$128.4K $22.80/SF
− Vacancy
−$6.4K −$1.14/SF
EGI
$122.0K $21.66/SF
− OpEx
−$30.5K −$5.42/SF
NOI
$91.5K $16.25/SF
Area
Madison, WI
Vacancy
5.00%
Lease Rate
$22.80 /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%
$1,829,840
Cap Rate 7%
$1,307,029
Cap Rate 9%
$1,016,578
Alternative Uses
Best Use
Specialty Retail
$1.31M
$1.14M – $1.52M
NOI $91,492 @ 7.0% cap · market cap 3.81%
Second Best
Retail
$1.15M
$1.01M – $1.34M
NOI $80,557 @ 7.0% cap · market cap 3.36%
Theoretical Best
Office A
$1.65M
$1.44M – $1.92M
NOI $115,163 @ 7.0% cap · market cap 4.80%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
45,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
957
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53704, WI
47,066
Population
22,740
Households
2.1
Avg Household Size
38
Median Age
49%
College-Educated
96%
High-School Grad
21.9 sq mi
ZIP Area
2,149
Density / Sq Mi
$75,007
Median Household Income
$47,665
Median Earnings
$1,231
Median Rent
$289,000
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Midwest region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Former restaurant building across from East Towne Mall with owner-user or redevelopment potential.
Where is this conventional restaurant located?
The property is located at 4344 E Towne Blvd Madison, WI.
What is the asking price?
The asking price for this property is $2,400,000.
What are key features of this property?
This property features: Former Chili’s restaurant property built in 1978; Across from East Towne Mall in Madison, WI; More than 45,000 cars per day pass the property
