Restaurant Building with Ski-Area
For Sale
$2,800,000
2165 Pine Grove Road, Steamboat Springs, CO 80487
Established restaurant property with a flexible interior, commercial kitchen, natural light, and on-site parking.
Property Size7,289 SF
Price / SF$383.56
Days on Market1390
Property Features for 2165 Pine Grove Road
General Information
Standard status
Active
Size
7,289 SF
Total Parking Spaces
14
Property subtype
Commercial
Additional Details
Road Access
Yes
Commercial Hood
Yes
Amenities
vaulted ceilings
natural light
dual sided fireplace
ski area views
open floorplan
Building Details
Building Size
7,289 SF
Year Built
1988
Buildings
1
Units
1
Listing Agency:
Steamboat Sotheby's International Realty
(970) 879-8100
Listed By:
James Howser
Source:
Coloradopartners
Added: Oct 18, 2022
Changed: Aug 7
Last Checked: Aug 7 at 3:43AM
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 Steamboat Sotheby's International Realty
Investment Insights
Based on property information with market context.
Built in 1988, this restaurant property offers nearly 7,300 square feet with a flexible open-plan interior. The dining room features vaulted ceilings, abundant windows, natural light, and a dual-sided fireplace. Existing kitchen improvements include a 21-foot hood system, multiple preparation and cooking stations, a raw bar, and a belly-up bar. The property is currently operating as a restaurant and may also accommodate retail use.
The building is in Steamboat Springs across from the Meadows Lot, with visibility to traffic traveling toward the ski area and views in that direction. Ample parking supports the existing restaurant configuration and other potential commercial concepts.
The building is in Steamboat Springs across from the Meadows Lot, with visibility to traffic traveling toward the ski area and views in that direction. Ample parking supports the existing restaurant configuration and other potential commercial concepts.
Key Highlights
- Nearly 7,300 square feet of restaurant space
- 21‑foot hood system with multiple prep and cooking stations
- Dual‑sided fireplace surrounded by dining‑room windows
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
$138,956
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
4.96%
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%
$2,779,120
$2.8M
Cap Rate 7%
$1,985,086
$2.0M
Cap Rate 9%
$1,543,956
$1.5M
Market Conditions
NOI Build-Up for 7,300 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
$197.1K $27.00/SF
− Vacancy
−$11.8K −$1.62/SF
EGI
$185.3K $25.38/SF
− OpEx
−$46.3K −$6.35/SF
NOI
$139.0K $19.04/SF
Area
Routt County, CO
Vacancy
6.00%
Lease Rate
$27.00 /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%
$2,779,120
Cap Rate 7%
$1,985,086
Cap Rate 9%
$1,543,956
Alternative Uses
Best Use
Specialty Retail
$1.99M
$1.74M – $2.32M
NOI $138,956 @ 7.0% cap · market cap 4.96%
Second Best
Retail
$1.77M
$1.55M – $2.07M
NOI $124,173 @ 7.0% cap · market cap 4.43%
Theoretical Best
Warehouse
$2.92M
$2.55M – $3.41M
NOI $204,378 @ 7.0% cap · market cap 7.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
1,020
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80487, CO
18,209
Population
13,231
Households
1.4
Avg Household Size
42
Median Age
57%
College-Educated
97%
High-School Grad
795.8 sq mi
ZIP Area
23
Density / Sq Mi
$106,837
Median Household Income
$50,551
Median Earnings
$1,927
Median Rent
$915,900
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 - Established restaurant property with a flexible interior, commercial kitchen, natural light, and on-site parking.
Where is this conventional restaurant located?
The property is located at 2165 Pine Grove Road Steamboat Springs, CO.
What is the asking price?
The asking price for this property is $2,800,000.
What are key features of this property?
This property features: Nearly 7,300 square feet of restaurant space; 21‑foot hood system with multiple prep and cooking stations; Dual‑sided fireplace surrounded by dining‑room windows
