Dual-Concept Restaurant
For Sale
Contact for pricing
2229 Deming Way, Middleton, WI 53562
Sale-leaseback offering with a 20-year absolute-net lease structure.
Property Size8,500 SF
Price / SF$361.99
Days on Market14
Property Features for 2229 Deming Way
General Information
Standard status
Active
Size
8,500 SF
Property subtype
Retail
Lease Type
Absolute Net
Investment Type
Sale/Leaseback
Net Operating Income
$200,000
Building Details
Year Built
2000
Listing Agency:
CBRE - Milwaukee
Listed By:
Nathan Powers · License #WI 834409-91
Source:
Crexi
Added: Jul 29
Changed: Aug 11
Last Checked: Aug 11 at 6:44AM
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 CBRE - Milwaukee
Investment Insights
Based on property information with market context.
The property is an 8,500-square-foot conventional restaurant building constructed in 2000. It is associated with an Applebee’s-IHOP dual-brand conversion, with the planned concept combining breakfast, lunch, dinner, beverages, and desserts within one restaurant operation.
Located at 2229 Deming Way in Middleton, Wisconsin, the asset is offered through a sale-leaseback structure with a 20-year term and absolute-net lease provisions. The property is one of four assets available individually or as part of a portfolio.
Located at 2229 Deming Way in Middleton, Wisconsin, the asset is offered through a sale-leaseback structure with a 20-year term and absolute-net lease provisions. The property is one of four assets available individually or as part of a portfolio.
Key Highlights
- 8,500‑square‑foot conventional restaurant building
- Constructed in 2000
- Applebee’s‑IHOP dual‑brand conversion planned
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
$108,554
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
3.53%
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%
$2,171,080
$2.2M
Cap Rate 7%
$1,550,771
$1.6M
Cap Rate 9%
$1,206,156
$1.2M
Market Conditions
NOI Build-Up for 8,500 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
$153.0K $18.00/SF
− Vacancy
−$8.3K −$0.97/SF
EGI
$144.7K $17.03/SF
− OpEx
−$36.2K −$4.26/SF
NOI
$108.6K $12.77/SF
Area
Dane County, WI
Vacancy
5.40%
Lease Rate
$18.00 /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%
$2,171,080
Cap Rate 7%
$1,550,771
Cap Rate 9%
$1,206,156
Alternative Uses
Best Use
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,554 @ 7.0% cap · market cap 3.53%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.98M
$1.73M – $2.30M
NOI $138,265 @ 7.0% cap · market cap 4.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
978
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53562, WI
29,092
Population
13,617
Households
2.1
Avg Household Size
40
Median Age
65%
College-Educated
96%
High-School Grad
31.1 sq mi
ZIP Area
935
Density / Sq Mi
$97,241
Median Household Income
$60,688
Median Earnings
$1,394
Median Rent
$495,600
Median Home Value
Market
Vacancy Rate% for Retail in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Sale-leaseback offering with a 20-year absolute-net lease structure.
Where is this conventional restaurant located?
The property is located at 2229 Deming Way Middleton, WI.
What is the asking price?
The asking price for this property is $3,076,923.
What are key features of this property?
This property features: 8,500‑square‑foot conventional restaurant building; Constructed in 2000; Applebee’s‑IHOP dual‑brand conversion planned
