Iconic Bar and Restaurant
For Sale
Contact for pricing
177 E 2nd St, Chico, CA 95928
Downtown Chico bar and restaurant with real estate for sale.
Property Size3,504 SF
Price / SF$306.79
Days on Market167
Property Features for 177 E 2nd St
General Information
Standard status
Active
Size
3,504 SF
Class
B
Property subtype
Business for Sale, Retail
Zoning
C1
Building Details
Year Built
1885
Year Renovated
2025
Buildings
1
Stories
2
Units
2
Listing Agency:
Century 21 Select Real Estate Chico
(530) 345-6618
Listed By:
Kimberly Shaffer · License #01415693
Source:
Crexi
Added: Feb 26
Changed: Aug 8
Last Checked: Aug 8 at 6:38AM
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 Century 21 Select Real Estate Chico
Investment Insights
Based on property information with market context.
This prime investment opportunity is located in downtown Chico, near California State University, Chico. The property features an iconic bar and restaurant that has been in operation for over 40 years. Both the building and business assets are available for sale. The first floor has been extensively renovated with quality and attention to detail. The redesigned bar and dining space has a 99-person capacity and an exceptional layout. Features include a well-designed bar, street-side patio seating, a full commercial kitchen, a dedicated dishwashing area, walk-in refrigeration, a unique living wall, and custom handmade tables. The sale includes a Type 47 liquor license, as well as all furniture, fixtures, equipment, and inventory. The business name is not included in the sale. The upstairs area has undergone major improvements and is thoughtfully redesigned for functional office space. Finish work remains, offering an opportunity for an owner-user to create their own style or complete the space for additional rental income. There is ample office space to accommodate both owner use and rental income potential. The property is conveniently located near the City of Chico parking lot, with additional street parking directly in front. The property size is 3504 square feet.
Key Highlights
- Prime downtown Chico location, blocks from California State University, Chico.
- Includes a valuable Type 47 liquor license.
- Extensively renovated first‑floor bar and restaurant with 99‑person capacity.
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
$46,441
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
4.32%
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%
$928,820
$928.8K
Cap Rate 7%
$663,443
$663.4K
Cap Rate 9%
$516,011
$516.0K
Market Conditions
NOI Build-Up for 3,504 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
$65.6K $18.72/SF
− Vacancy
−$3.7K −$1.05/SF
EGI
$61.9K $17.67/SF
− OpEx
−$15.5K −$4.42/SF
NOI
$46.4K $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%
$928,820
Cap Rate 7%
$663,443
Cap Rate 9%
$516,011
Alternative Uses
Best Use
Specialty Retail
$663.4K
$580.5K – $774.0K
NOI $46,441 @ 7.0% cap · market cap 4.32%
Second Best
Retail
$619.2K
$541.8K – $722.4K
NOI $43,345 @ 7.0% cap · market cap 4.03%
Theoretical Best
Office A
$707.5K
$619.1K – $825.4K
NOI $49,524 @ 7.0% cap · market cap 4.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,066
Businesses Nearby
Well-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
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
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- Taps Bar & Grill — 407 Walnut St, Chico, CA 95928
- Riley's — 702 W 5th St, Chico, CA 95928
Frequently Asked Questions
What type of property is this?
Bar & Pub - Downtown Chico bar and restaurant with real estate for sale.
Where is this bar & pub located?
The property is located at 177 E 2nd St Chico, CA.
What is the asking price?
The asking price for this property is $1,075,000.
What are key features of this property?
This property features: Prime downtown Chico location, blocks from California State University, Chico.; Includes a valuable Type 47 liquor license.; Extensively renovated first‑floor bar and restaurant with 99‑person capacity.
