Freestanding Grocery
New
For Sale
$3,456,000
1510 E Portland Road, Newberg, OR 97132
Corporate-guaranteed grocery property with a long-term NNN lease and community commercial zoning.
Property Size17,135 SF
Price / SF$132.23
Days on Market3
Property Features for 1510 E Portland Road
General Information
Standard status
Active
Size
17,135 SF
Property subtype
Retail
Zoning
C-2 Community Commercial
Building Details
Building Size
17,135 SF
Year Built
1968
Tenancy
Single
Listing Agency:
SRS Industrial - Newport Beach
Listed By:
Matthew Mousavi · License #CA 01732226
(714) 404-8849
Source:
Srsre
Added: Sep 22
Last Checked: Sep 22 at 1:44PM
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 SRS Industrial - Newport Beach
Investment Insights
Based on property information with market context.
This freestanding grocery property includes 26,136 square feet of building area and was built in 1968. Grocery Outlet Inc. occupies the property under a corporate-guaranteed NNN lease, with limited landlord responsibilities. The tenant has exercised a 10-year lease extension, and the agreement includes two additional 5-year extension options. Contractual rent increases are set at 10% every 5 years during the initial term and at the start of each option period.
The property is located at 1510 E. Portland Road in Newberg, Oregon, within the Portland MSA. C-2 Community Commercial zoning supports its established retail setting. The site records approximately 350K annual visits and ranks in the top 86th percentile among the brand’s locations in the state.
The property is located at 1510 E. Portland Road in Newberg, Oregon, within the Portland MSA. C-2 Community Commercial zoning supports its established retail setting. The site records approximately 350K annual visits and ranks in the top 86th percentile among the brand’s locations in the state.
Key Highlights
- 26,136 SF freestanding grocery property built in 1968
- Grocery Outlet Inc. corporate‑guaranteed NNN lease
- 10‑year lease extension exercised with 2 (5‑year) options
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
$312,848
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
9.05%
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%
$6,256,960
$6.3M
Cap Rate 7%
$4,469,257
$4.5M
Cap Rate 9%
$3,476,089
$3.5M
Market Conditions
NOI Build-Up for 26,136 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
$470.4K $18.00/SF
− Vacancy
−$23.5K −$0.90/SF
EGI
$446.9K $17.10/SF
− OpEx
−$134.1K −$5.13/SF
NOI
$312.8K $11.97/SF
Area
Yamhill County, OR
Vacancy
5.00%
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%
$6,256,960
Cap Rate 7%
$4,469,257
Cap Rate 9%
$3,476,089
Alternative Uses
Best Use
Retail
$4.47M
$3.91M – $5.21M
NOI $312,848 @ 7.0% cap · market cap 9.05%
Second Best
Specialty Retail
$4.06M
$3.55M – $4.73M
NOI $284,004 @ 7.0% cap · market cap 8.22%
Theoretical Best
Office A
$7.05M
$6.17M – $8.23M
NOI $493,832 @ 7.0% cap · market cap 14.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,041
Businesses Nearby
114k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 31%
Shops & Services 24%
Home Improvements & Furnishings 14%
Groceries 13%
Newberg Ace Hardware
Home Improvements & Furnishings
15,327 visits/mo
0.2 miles
Grocery Outlet Bargain Market
Groceries
14,658 visits/mo
0.1 miles
Goodwill
Apparel
12,992 visits/mo
0.3 miles
Muchas Gracias
Dining
9,047 visits/mo
0.2 miles
Abby's Legendary Pizza
Dining
7,794 visits/mo
0.2 miles
Demographics for 97132, OR
32,028
Population
12,411
Households
2.6
Avg Household Size
38
Median Age
39%
College-Educated
93%
High-School Grad
62.6 sq mi
ZIP Area
512
Density / Sq Mi
$95,150
Median Household Income
$46,005
Median Earnings
$1,567
Median Rent
$498,500
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 West region
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Similar Off Market Nearby
- Nap's Thriftway — 112 E 1st St, Newberg, OR 97132
- Grocery Outlet — 1510 E Portland Rd, Newberg, OR 97132
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Corporate-guaranteed grocery property with a long-term NNN lease and community commercial zoning.
Where is this grocery and convenience store located?
The property is located at 1510 E Portland Road Newberg, OR.
What is the asking price?
The asking price for this property is $3,456,000.
What are key features of this property?
This property features: 26,136 SF freestanding grocery property built in 1968; Grocery Outlet Inc. corporate‑guaranteed NNN lease; 10‑year lease extension exercised with 2 (5‑year) options
