Mixed-Use Building in Opportunity
For Sale
$1,550,000
222 Molalla Ave, Oregon City, OR 97045
Mixed-use building in high-traffic area with retail and residential potential.
Property Size7,800 SF
Price / SF$198.72
Days on Market522
Property Features for 222 Molalla Ave
General Information
Standard status
Active
Size
7,800 SF
Total Parking Spaces
29
Property subtype
Commercial
Zoning
MUC1
Taxes and HOA fees
Annual Taxes
$17,780
Building Details
Building Size
7,800 SF
Year Built
1944
Buildings
1
Stories
2
Listing Agency:
Keller Williams PDX Central
(503) 847-5903
Listed By:
Kaya Liden
(503) 847-5903
Source:
Metanars
Added: Mar 20, 2025
Changed: Aug 23
Last Checked: Aug 22 at 7:44AM
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 PDX Central
Investment Insights
Based on property information with market context.
Located within the Molalla Avenue business corridor and within the Oregon City Opportunity Zone, the building at 222 Molalla presents an opportunity for an owner/user or investor. The property is situated at a signalized intersection with high daily traffic count and includes 29 off-street parking spaces and monument signage. Zoned Commercial Mixed-Use, the ground floor retail space measures approximately 6,000 sq.ft. and includes open retail areas, storage, loading doors, a kitchen/break room area, security cameras and a building security system. The upper floor has its own entrance and street address. Prior to purchase in 2017, the upper floor was utilized as a two-bedroom/ one bathroom apartment with a full kitchen. The property size is 7,800 sqft.
Key Highlights
- Located in Oregon City Opportunity Zone.
- High daily traffic count at a signalized intersection.
- 29 off‑street parking spaces.
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
$122,532
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
7.91%
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%
$2,450,640
$2.5M
Cap Rate 7%
$1,750,457
$1.8M
Cap Rate 9%
$1,361,467
$1.4M
Market Conditions
NOI Build-Up for 7,800 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
$231.2K $29.64/SF
− Vacancy
−$35.1K −$4.51/SF
EGI
$196.1K $25.13/SF
− OpEx
−$73.5K −$9.43/SF
NOI
$122.5K $15.71/SF
Area
Clackamas County, OR
Vacancy
15.20%
Lease Rate
$29.64 /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%
$2,450,640
Cap Rate 7%
$1,750,457
Cap Rate 9%
$1,361,467
Alternative Uses
Best Use
Mixed Use
$1.75M
$1.53M – $2.04M
NOI $122,532 @ 7.0% cap · market cap 7.91%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.11M
$1.84M – $2.46M
NOI $147,379 @ 7.0% cap · market cap 9.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,228
Businesses Nearby
Explore this area
Business Placement
Demographics for 97045, OR
57,403
Population
21,702
Households
2.6
Avg Household Size
41
Median Age
33%
College-Educated
95%
High-School Grad
86.8 sq mi
ZIP Area
661
Density / Sq Mi
$100,388
Median Household Income
$49,342
Median Earnings
$1,600
Median Rent
$563,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use building in high-traffic area with retail and residential potential.
Where is this mixed-use property located?
The property is located at 222 Molalla Ave Oregon City, OR.
What is the asking price?
The asking price for this property is $1,550,000.
What are key features of this property?
This property features: Located in Oregon City Opportunity Zone.; High daily traffic count at a signalized intersection.; 29 off‑street parking spaces.
