Licensed Commercial Kitchen
New
For Sale
$895,000
19650 SW Highway 18, McMinnville, OR 97128
HC-zoned property with a tasting room, carriage house, private well, and updated refrigeration and HVAC systems.
Property Size5,185 SF
Lot Size2.46 Acres
Price / SF$172.61
Days on Market4
Property Features for 19650 SW Highway 18
General Information
Standard status
Active
Size
5,185 SF
Lot size
2.46 Acres
Property subtype
Commercial
Zoning
HC
Site & Location
Highway Access
Yes
Road Access
Yes
Additional Details
Land Use
commercial, winery, hospitality
Amenities
commercial kitchen
tasting room
carriage house
mobile home
Building Details
Year Built
1880
Buildings
2
Listing Agency:
Windermere Heritage
Listed By:
Brittany Gibbs · License #201209867
(503) 836-2010
Source:
Findhousesinoregon
Added: Sep 14
Changed: Sep 15
Last Checked: Sep 16 at 5:12PM
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 Heritage
Investment Insights
Based on property information with market context.
This commercial kitchen property includes a 2,849-square-foot licensed commercial kitchen and tasting room, along with a 1,148-square-foot carriage house. The improvements total 5,185 square feet and are situated on 2.46 acres. Property features include a private well, new septic system, roof, air-conditioning equipment, and refrigeration. A Section 8 manufactured home is also part of the property.
Located on SW Highway 18 in McMinnville, the property is positioned within Oregon Wine Country and near more than 200 wineries. HC zoning supports the existing commercial configuration, while approximately 1.5 acres are identified for vineyard potential. The carriage house provides an additional structure for continued use, redevelopment, or replacement, as described in the property information.
Located on SW Highway 18 in McMinnville, the property is positioned within Oregon Wine Country and near more than 200 wineries. HC zoning supports the existing commercial configuration, while approximately 1.5 acres are identified for vineyard potential. The carriage house provides an additional structure for continued use, redevelopment, or replacement, as described in the property information.
Key Highlights
- 2.46‑acre HC‑zoned commercial property on SW Highway 18
- 2,849 SF licensed commercial kitchen and tasting room
- 1,148 SF carriage house included
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
$67,198
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
7.51%
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%
$1,343,960
$1.3M
Cap Rate 7%
$959,971
$960.0K
Cap Rate 9%
$746,644
$746.6K
Market Conditions
NOI Build-Up for 5,185 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
$112.0K $21.60/SF
− Vacancy
−$4.5K −$0.86/SF
EGI
$107.5K $20.74/SF
− OpEx
−$40.3K −$7.78/SF
NOI
$67.2K $12.96/SF
Area
Yamhill County, OR
Vacancy
4.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,343,960
Cap Rate 7%
$959,971
Cap Rate 9%
$746,644
Alternative Uses
Best Use
Mixed Use
$960.0K
$840.0K – $1.12M
NOI $67,198 @ 7.0% cap · market cap 7.51%
Second Best
Specialty Retail
$804.9K
$704.3K – $939.0K
NOI $56,342 @ 7.0% cap · market cap 6.30%
Theoretical Best
Office A
$1.40M
$1.22M – $1.63M
NOI $97,969 @ 7.0% cap · market cap 10.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
11
Businesses Nearby
Explore this area
Business Placement
Demographics for 97128, OR
38,394
Population
15,291
Households
2.5
Avg Household Size
40
Median Age
28%
College-Educated
88%
High-School Grad
112.2 sq mi
ZIP Area
342
Density / Sq Mi
$72,055
Median Household Income
$37,427
Median Earnings
$1,295
Median Rent
$419,200
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Commercial kitchen - HC-zoned property with a tasting room, carriage house, private well, and updated refrigeration and HVAC systems.
Where is this commercial kitchen located?
The property is located at 19650 SW Highway 18 McMinnville, OR.
What is the asking price?
The asking price for this property is $895,000.
What are key features of this property?
This property features: 2.46‑acre HC‑zoned commercial property on SW Highway 18; 2,849 SF licensed commercial kitchen and tasting room; 1,148 SF carriage house included
