Restaurant with Finished
For Sale
$525,000
2705 W Beltline Highway, Madison, WI 53713
COMMERCIAL - Madison, WI
Property Size6,750 SF
Lot Size0.33 Acres
Price / SF$77.78
Days on Market8
Property Features for 2705 W Beltline Highway
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
CC-T
Security features
Security Lighting, Security System, Security
Interior features
Private Restrooms, Reception area, Display window, Security system, Security fence, Security lighting, Private office(s)
Fencing
Fenced
Lot features
Free standing, Near Major Highway
Directions
W. Beltline Hwy ext 259 at Todd Dr, at the corner of Todd Dr & W. Beltline Hwy.
Subdivision
MADISON - C W18
Standard status
Active
APN
0709-343-0801-0
Size
6,750 SF
Lot size
0.33 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
11623
Building Details
Year built
1960
Number of units
1
Roof type
Composition, Metal
Listing Agency:
Restaino & Associates
(608) 833-7777
Listed By:
Xinli Chen · License #5974790
(608) 287-8969
Added: Aug 12
Changed: Aug 19
Last Checked: Aug 19 at 8:06PM
MLS# 1998442
Copyright © 2026 REALTORS® Association of South Central Wisconsin. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Restaurant property at 2705 W Beltline Highway includes a 4,405-square-foot main floor and a finished 2,345-square-foot basement. The sale includes the real estate, equipment, and furniture. Interior features include private restrooms, a reception area, display windows, private offices, a security system, and security lighting. The site measures 0.33 acres and is fenced, with CC-T zoning.
The property is positioned within the Todd Drive Project commercial development area, with exposure from the Beltline and surrounding office, business, and apartment uses. Building systems were renovated in 2014, including plumbing, electrical, HVAC, and the water heater. The HVAC setup includes two furnaces and two air-conditioning systems. A new roof and condenser were installed in 2023. The basement provides additional finished space within the 6,750-square-foot property.
The property is positioned within the Todd Drive Project commercial development area, with exposure from the Beltline and surrounding office, business, and apartment uses. Building systems were renovated in 2014, including plumbing, electrical, HVAC, and the water heater. The HVAC setup includes two furnaces and two air-conditioning systems. A new roof and condenser were installed in 2023. The basement provides additional finished space within the 6,750-square-foot property.
Key Highlights
- 4,405‑square‑foot main floor plus a finished 2,345‑square‑foot basement
- Sale includes real estate, equipment, and furniture
- 0.33‑acre fenced site with CC‑T zoning
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
$35,639
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
6.79%
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%
$712,780
$712.8K
Cap Rate 7%
$509,129
$509.1K
Cap Rate 9%
$395,989
$396.0K
Market Conditions
NOI Build-Up for 6,750 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
$52.7K $7.80/SF
− Vacancy
−$1.7K −$0.26/SF
EGI
$50.9K $7.54/SF
− OpEx
−$15.3K −$2.26/SF
NOI
$35.6K $5.28/SF
Area
Madison, WI
Vacancy
3.30%
Lease Rate
$7.80 /SF/Yr
Expense Ratio
30.00%
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%
$712,780
Cap Rate 7%
$509,129
Cap Rate 9%
$395,989
Alternative Uses
Best Use
Specialty Retail
$1.57M
$1.37M – $1.83M
NOI $109,654 @ 7.0% cap · market cap 20.89%
Second Best
Industrial
$509.1K
$445.5K – $594.0K
NOI $35,639 @ 7.0% cap · market cap 6.79%
Theoretical Best
Office A
$1.97M
$1.73M – $2.30M
NOI $138,024 @ 7.0% cap · market cap 26.29%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
680
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 53713, WI
23,291
Population
11,635
Households
2
Avg Household Size
32
Median Age
39%
College-Educated
86%
High-School Grad
9.8 sq mi
ZIP Area
2,377
Density / Sq Mi
$57,833
Median Household Income
$36,998
Median Earnings
$1,173
Median Rent
$259,100
Median Home Value
Market
Vacancy Rate% for Retail in Midwest 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 - Equipped restaurant property with private restrooms, office space, display windows, and a fenced site.
Where is this conventional restaurant located?
The property is located at 2705 W Beltline Highway Madison, WI.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: 4,405‑square‑foot main floor plus a finished 2,345‑square‑foot basement; Sale includes real estate, equipment, and furniture; 0.33‑acre fenced site with CC‑T zoning
