Sweet Home Restaurant with
For Sale
Contact for pricing
2301 Main St, Sweet Home, OR 97386
Remodeled restaurant on a large lot with development potential.
Property Size1,746 SF
Lot Size0.77 Acres
Price / SF$526.92
Days on Market99
Property Features for 2301 Main St
General Information
Standard status
Active
Size
1,746 SF
Lot size
0.77 Acres
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$60,000
Building Details
Year Built
1985
Year Renovated
2025
Tenancy
Single
Listing Agency:
Marcus & Millichap - Portland
(503) 200-2031
Listed By:
Eric Garske · License #OR 201235586
Source:
Crexi
Added: May 20
Changed: Aug 23
Last Checked: Aug 25 at 1:19PM
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 Marcus & Millichap - Portland
Investment Insights
Based on property information with market context.
The property in Sweet Home is a 1,746 square foot quick-service restaurant on a 0.77-acre parcel. Situated along the city's primary commercial corridor, it offers visibility, multiple access points, on-site parking, and a drive-thru. Excess land allows for additional development, accommodating more tenants or future expansion. Originally built in 1985 and remodeled in 2025, the property includes capital improvements such as a new roof and upgraded HVAC system. The property is near national and regional retailers such as Safeway, Dollar Tree, Bi-Mart, and McDonald's.
Key Highlights
- Absolute NNN lease with a 10‑year primary term, 2% annual rent escalations, and two 5‑year extension options, ensuring stable and predictable income growth.
- Prime location along the city's primary commercial corridor with excellent visibility, multiple access points, and ample parking.
- Extensively remodeled in 2025 with significant capital improvements, including a new roof and upgraded HVAC system.
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
$28,744
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
3.12%
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%
$574,880
$574.9K
Cap Rate 7%
$410,629
$410.6K
Cap Rate 9%
$319,378
$319.4K
Market Conditions
NOI Build-Up for 1,746 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
$56.4K $32.28/SF
− Vacancy
−$18.0K −$10.33/SF
EGI
$38.3K $21.95/SF
− OpEx
−$9.6K −$5.49/SF
NOI
$28.7K $16.46/SF
Area
Linn County, OR
Vacancy
32.00%
Lease Rate
$32.28 /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%
$574,880
Cap Rate 7%
$410,629
Cap Rate 9%
$319,378
Alternative Uses
Best Use
Specialty Retail
$410.6K
$359.3K – $479.1K
NOI $28,744 @ 7.0% cap · market cap 3.12%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$508.6K
$445.1K – $593.4K
NOI $35,605 @ 7.0% cap · market cap 3.87%
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
106k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 51%
Dining 24%
Groceries 19%
Home Improvements & Furnishings 5%
Safeway
Groceries
20,466 visits/mo
0.4 miles
McDonald's
Dining
14,377 visits/mo
0.2 miles
Bi-Mart
Shops & Services
12,258 visits/mo
0.2 miles
Taco Bell
Dining
9,347 visits/mo
0.5 miles
Dollar Tree
Shops & Services
8,246 visits/mo
0.2 miles
Demographics for 97386, OR
14,611
Population
6,339
Households
2.3
Avg Household Size
44
Median Age
11%
College-Educated
87%
High-School Grad
125.9 sq mi
ZIP Area
116
Density / Sq Mi
$68,116
Median Household Income
$37,125
Median Earnings
$1,141
Median Rent
$302,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Remodeled restaurant on a large lot with development potential.
Where is this drive through restaurant located?
The property is located at 2301 Main St Sweet Home, OR.
What is the asking price?
The asking price for this property is $920,000.
What are key features of this property?
This property features: Absolute NNN lease with a 10‑year primary term, 2% annual rent escalations, and two 5‑year extension options, ensuring stable and predictable income growth.; Prime location along the city's primary commercial corridor with excellent visibility, multiple access points, and ample parking.; Extensively remodeled in 2025 with significant capital improvements, including a new roof and upgraded HVAC system.
