Drive-Through Restaurant with
For Sale
$1,550,000
Pending
248 W Center St, Salem, UT 84653
Operational restaurant includes inside dining and a drive-thru window, with real estate and equipment/fixtures included.
Property Size4,054 SF
Days on Market758
Property Features for 248 W Center St
General Information
Standard status
Pending
Size
4,054 SF
Additional Details
Business Included
Yes
Highway Access
Yes
Taxes and HOA fees
Annual Taxes
$7,831
Listing Agency:
Charles Wixom Realty
(801) 372-3481
Listed By:
Charles T Wixom · License #5468729
(801) 372-3481
Source:
Exprealty
Added: Jul 15, 2024
Changed: Jul 22
Last Checked: Jul 22 at 5:10PM
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 Charles Wixom Realty
Investment Insights
Based on property information with market context.
This is a fully operational, leased restaurant property with improvements and equipment in place. The facility supports both inside sit-down dining and service through a drive-thru window. Purchase pricing includes the real estate along with the equipment and fixtures, and the tenant also has an option to purchase.
The property is located adjacent to Salem Hills High School and along Highway 198 running through Salem. It is currently in operation as Stan's Drive In, with a well-established client base noted in the available remarks.
The building is approximately 4,054 square feet based on a courtesy estimate from Utah County Records; buyers are advised to verify dimensions through an independent measurement.
The property is located adjacent to Salem Hills High School and along Highway 198 running through Salem. It is currently in operation as Stan's Drive In, with a well-established client base noted in the available remarks.
The building is approximately 4,054 square feet based on a courtesy estimate from Utah County Records; buyers are advised to verify dimensions through an independent measurement.
Key Highlights
- Fully operational restaurant and retail/restaurant business with inside sit‑down dining and a drive‑thru window
- 4,054 SF building (courtesy estimate from Utah County Records; buyer to verify)
- Leased for 3 years, with tenant option to purchase
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
$72,703
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
4.69%
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%
$1,454,060
$1.5M
Cap Rate 7%
$1,038,614
$1.0M
Cap Rate 9%
$807,811
$807.8K
Market Conditions
NOI Build-Up for 4,054 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
$101.2K $24.96/SF
− Vacancy
−$4.2K −$1.05/SF
EGI
$96.9K $23.91/SF
− OpEx
−$24.2K −$5.98/SF
NOI
$72.7K $17.93/SF
Area
Utah County, UT
Vacancy
4.20%
Lease Rate
$24.96 /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%
$1,454,060
Cap Rate 7%
$1,038,614
Cap Rate 9%
$807,811
Alternative Uses
Best Use
Specialty Retail
$1.04M
$908.8K – $1.21M
NOI $72,703 @ 7.0% cap · market cap 4.69%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.12M
$977.8K – $1.30M
NOI $78,226 @ 7.0% cap · market cap 5.05%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
271
Businesses Nearby
6k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Exxon
Shops & Services
5,549 visits/mo
0.3 miles
Demographics for 84653, UT
11,103
Population
3,235
Households
3.4
Avg Household Size
30
Median Age
41%
College-Educated
98%
High-School Grad
16.1 sq mi
ZIP Area
690
Density / Sq Mi
$111,420
Median Household Income
$48,182
Median Earnings
$1,581
Median Rent
$569,300
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 - Operational restaurant includes inside dining and a drive-thru window, with real estate and equipment/fixtures included.
Where is this drive through restaurant located?
The property is located at 248 W Center St Salem, UT.
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: Fully operational restaurant and retail/restaurant business with inside sit‑down dining and a drive‑thru window; 4,054 SF building (courtesy estimate from Utah County Records; buyer to verify) ; Leased for 3 years, with tenant option to purchase
