Turnkey Tavern & Entertainment
For Sale
Contact for pricing
Pending
2039 Redwood Ave, Grants Pass, OR 97527
Remodeled tavern and entertainment venue with outdoor space for sale.
Property Size3,200 SF
Lot Size0.58 Acres
Days on Market158
Property Features for 2039 Redwood Ave
General Information
Standard status
Pending
Size
3,200 SF
Class
A
Lot size
0.58 Acres
Property subtype
Business for Sale, Hospitality, Mixed Use, Retail, Special Purpose
Zoning
General Commercial
Investment Type
Owner/User
Building Details
Year Built
1938
Year Renovated
2023
Buildings
1
Stories
2
Units
1
Tenancy
Single
Listing Agency:
Keller Williams Realty Southern Oregon
(541) 608-0447
Listed By:
Melissa Hayes · License #OR 201251085
Source:
Crexi
Added: Mar 6
Changed: Aug 8
Last Checked: Aug 11 at 5:15AM
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 Keller Williams Realty Southern Oregon
Investment Insights
Based on property information with market context.
This is a turnkey tavern and entertainment venue known as The Toasted Barrel. The property features a 3,200 square foot barn-style building, originally constructed in the 1930s and fully remodeled in 2023. It is situated on 0.58 acres along Redwood Avenue, with a traffic volume of 11,000 vehicles per day. Recent upgrades include a kitchen and prep addition of approximately 350 square feet with a walk-in cooler, along with new electrical, plumbing, lighting, patio, and custom bar improvements. The property includes a fully fenced rear patio with a built-in stage, an outdoor bar service area, and seating. The sale includes the real estate and turnkey business assets, furniture, decor, kitchen equipment, bar equipment, service ware, and outdoor furnishings. The upper-level space offers potential for an apartment or owner's quarters, subject to buyer verification. The property includes three Oregon Lottery machines, subject to Oregon State Lottery approval. The property is suitable for bars, pubs, restaurants, hospitality, retail, and mixed-use purposes.
Key Highlights
- Turnkey tavern and entertainment venue with real estate included, offering immediate operational capability.
- Fully remodeled in 2023 with significant upgrades including a new kitchen, electrical, plumbing, lighting, patio, and custom bar.
- Features a large, fenced rear patio with a built‑in stage and outdoor bar, ideal for events and live entertainment.
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
$36,469
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
3.33%
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%
$729,380
$729.4K
Cap Rate 7%
$520,986
$521.0K
Cap Rate 9%
$405,211
$405.2K
Market Conditions
NOI Build-Up for 3,200 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
$51.8K $16.20/SF
− Vacancy
−$3.2K −$1.00/SF
EGI
$48.6K $15.20/SF
− OpEx
−$12.2K −$3.80/SF
NOI
$36.5K $11.40/SF
Area
Josephine County, OR
Vacancy
6.20%
Lease Rate
$16.20 /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%
$729,380
Cap Rate 7%
$520,986
Cap Rate 9%
$405,211
Alternative Uses
Best Use
Specialty Retail
$521.0K
$455.9K – $607.8K
NOI $36,469 @ 7.0% cap · market cap 3.33%
Second Best
Hotel Hospitality
$285.0K
$249.4K – $332.5K
NOI $19,950 @ 7.0% cap · market cap 1.82%
Theoretical Best
Office A
$725.6K
$634.9K – $846.5K
NOI $50,789 @ 7.0% cap · market cap 4.64%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
203
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 97527, OR
36,358
Population
15,481
Households
2.3
Avg Household Size
49
Median Age
19%
College-Educated
90%
High-School Grad
219.8 sq mi
ZIP Area
165
Density / Sq Mi
$66,396
Median Household Income
$35,825
Median Earnings
$1,350
Median Rent
$408,200
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
- The Toasted Barrel — 2039 Redwood Ave, Grants Pass, OR 97527
- Starbucks — 1690 Allen Creek Rd, Grants Pass, OR 97527
- Cedarwood Saloon — 1345 Redwood Ave, Grants Pass, OR 97527
- O'Aces — 1867 Redwood Ave # 4, Grants Pass, OR 97527
Frequently Asked Questions
What type of property is this?
Bar & Pub - Remodeled tavern and entertainment venue with outdoor space for sale.
Where is this bar & pub located?
The property is located at 2039 Redwood Ave Grants Pass, OR.
What is the asking price?
The asking price for this property is $1,095,000.
What are key features of this property?
This property features: Turnkey tavern and entertainment venue with real estate included, offering immediate operational capability.; Fully remodeled in 2023 with significant upgrades including a new kitchen, electrical, plumbing, lighting, patio, and custom bar.; Features a **large, fenced rear patio with a built‑in stage and outdoor bar**, ideal for events and live entertainment.
