Building Details

Year Built 1950

Buildings 1

Listing Agency: CENTURY 21 Lund, Realtors

Listed By: Kristi Tausch Show Phone

Source: Pierceandkingcountyhouses

Added: Sep 21 Changed: Sep 26 Last Checked: Sep 26 at 2:30PM

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Investment Insights

Based on property information with market context.

Built in 1950, this 2,420-square-foot restaurant property has a café-style dining area at the front and a small bar toward the rear. Existing improvements include restaurant equipment, two restrooms, a walk-in cooler, and storage areas. The building needs updating and creative work before its next use.

The property is at 216 Main Ave in Morton, Washington, along a commercial street with sidewalks and benches. The surrounding area includes a variety of businesses.

Key Highlights

• 2,420‑square‑foot restaurant building, constructed in 1950
• Front café‑style dining area and a small rear bar
• Restaurant equipment, walk‑in cooler, two restrooms, and storage areas

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

$25,456

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

8.49%

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%

$509,120 $509.1K

Cap Rate 7%

$363,657 $363.7K

Cap Rate 9%

$282,844 $282.8K

Market Conditions

NOI Build-Up for 2,420 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

$34.8K $14.40/SF

− Vacancy

−$906 −$0.37/SF

EGI

$33.9K $14.03/SF

− OpEx

−$8.5K −$3.51/SF

NOI

$25.5K $10.52/SF

Area

Lewis County, WA

Vacancy

2.60%

Lease Rate

$14.40 /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%

$509,120

Cap Rate 7%

$363,657

Cap Rate 9%

$282,844

Alternative Uses

Best Use

Specialty Retail

$363.7K

$318.2K – $424.3K (±1% cap)

NOI $25,456 @ 7.0% cap · market cap 8.49%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$738.1K

$645.9K – $861.1K (±1% cap)

NOI $51,668 @ 7.0% cap · market cap 17.23%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Papa Oso's Mexican ... Restaurant

Suggested Use

Top Pick Parking Lot & Garage HVAC Service Bakery (Bike/Boat/Book/etc) Store Dental Office Tanning Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

237

Businesses Nearby

23k

Monthly Visits Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Chevron Shops & Services

14,139 visits/mo 0.3 miles

Dollar General Shops & Services

5,427 visits/mo 0.2 miles

Shell Shops & Services

2,267 visits/mo 0.4 miles

KeyBank Shops & Services

1,502 visits/mo 0.3 miles

Demographics for 98356, WA

2,179

Population

1,087

Households

2

Avg Household Size

52

Median Age

13%

College-Educated

89%

High-School Grad

125.8 sq mi

ZIP Area

17

Density / Sq Mi

$49,507

Median Household Income

$36,761

Median Earnings

$1,047

Median Rent

$281,000

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this breakfast & diners located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Breakfast & diner - Existing food-service equipment, a rear bar, and support spaces are part of this established restaurant property.

Where is this breakfast & diner located?

The property is located at 216 Main Ave Morton, WA.

What is the asking price?

The asking price for this property is $299,900.

What are key features of this property?

This property features: 2,420‑square‑foot restaurant building, constructed in 1950; Front café‑style dining area and a small rear bar; Restaurant equipment, walk‑in cooler, two restrooms, and storage areas