Freestanding Restaurant Near Highway
For Sale
$3,300,000
2010 Business Lane, Chico, CA 95928
Freestanding restaurant with highway visibility near Chico Marketplace.
Property Size8,356 SF
Price / SF$394.93
Days on Market150
Property Features for 2010 Business Lane
General Information
Standard status
Active
Size
8,356 SF
Property subtype
Retail
Listing Agency:
CBRE | Sacramento
(916) 446-8760
Listed By:
Chris Campbell · License #1204114
(916) 446-8760
Source:
Cbre
Added: Mar 25
Changed: Aug 8
Last Checked: Aug 20 at 1:13PM
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 CBRE | Sacramento
Investment Insights
Based on property information with market context.
This freestanding restaurant is located in Chico, California, home of California State University, Chico. The 8,356 square-foot property is positioned in a regional shopping area that attracts customers from surrounding communities. The building is visible from Highway 99 and is located across the street from Chico Marketplace (formerly known as the Chico Mall), next to Hobby Lobby, Target, and BevMo! The recently completed Bikeway 99 project provides foot traffic access to shoppers from across 20th Street at the Chico Marketplace.
Key Highlights
- Freeway visibility and location just off Highway 99.
- Freestanding restaurant in Chico, CA, home of California State University, Chico.
- Positioned in a regional shopping area drawing customers from surrounding communities.
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
$110,748
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
3.36%
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%
$2,214,960
$2.2M
Cap Rate 7%
$1,582,114
$1.6M
Cap Rate 9%
$1,230,533
$1.2M
Market Conditions
NOI Build-Up for 8,356 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
$156.4K $18.72/SF
− Vacancy
−$8.8K −$1.05/SF
EGI
$147.7K $17.67/SF
− OpEx
−$36.9K −$4.42/SF
NOI
$110.7K $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%
$2,214,960
Cap Rate 7%
$1,582,114
Cap Rate 9%
$1,230,533
Alternative Uses
Best Use
Specialty Retail
$1.58M
$1.38M – $1.85M
NOI $110,748 @ 7.0% cap · market cap 3.36%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.69M
$1.48M – $1.97M
NOI $118,100 @ 7.0% cap · market cap 3.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
800
Businesses Nearby
Under-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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Freestanding restaurant with highway visibility near Chico Marketplace.
Where is this conventional restaurant located?
The property is located at 2010 Business Lane Chico, CA.
What is the asking price?
The asking price for this property is $3,300,000.
What are key features of this property?
This property features: Freeway visibility and location just off Highway 99.; Freestanding restaurant in Chico, CA, home of California State University, Chico.; Positioned in a regional shopping area drawing customers from surrounding communities.
