Restaurant Building with Banquet
For Sale
$599,000
272 Route 4a West, Castleton, VT 05735
Single-level layout includes multiple dining areas, a bar, offices, and an apartment behind the restaurant.
Property Size6,369 SF
Price / SF$94.05
Days on Market14
Property Features for 272 Route 4a West
General Information
Standard status
Active
Size
6,369 SF
Property subtype
Commercial
Additional Details
Road Access
Yes
Amenities
solar panels
Building Details
Year Built
1970
Listing Agency:
Westside Real Estate
Listed By:
Melissa Loughan
(802) 846-8460
Source:
Themarcelinoteam
Added: Jul 29
Changed: Aug 10
Last Checked: Aug 10 at 3:51AM
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 Westside Real Estate
Investment Insights
Based on property information with market context.
The 6,369-square-foot restaurant property at 272 Route 4a West includes a single-level dining facility with three separate dining areas, a banquet room, and a distinct bar room. The building also contains offices and a cook’s apartment located behind the restaurant. It was licensed for 200 seats and includes a creemee stand. The property is ADH compliant, with some flooring and cosmetic work needed; the carpets have been cleaned. A large parking lot serves the building, which has 274 feet of road frontage. Owned solar panels are installed on the newer roof. The property is near Castleton Four Corners, Vermont State University, Lake Bomoseen, and skiing. Office or retail conversion is identified as a potential alternative use, subject to permits.
Key Highlights
- 6,369‑square‑foot restaurant property with 274 feet of road frontage
- Three separate dining areas plus a dedicated banquet room
- Separate bar room and creemee stand
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
$36,714
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
6.13%
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%
$734,280
$734.3K
Cap Rate 7%
$524,486
$524.5K
Cap Rate 9%
$407,933
$407.9K
Market Conditions
NOI Build-Up for 6,369 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
$57.3K $9.00/SF
− Vacancy
−$4.9K −$0.77/SF
EGI
$52.4K $8.24/SF
− OpEx
−$15.7K −$2.47/SF
NOI
$36.7K $5.76/SF
Area
Rutland County, VT
Vacancy
8.50%
Lease Rate
$9.00 /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%
$734,280
Cap Rate 7%
$524,486
Cap Rate 9%
$407,933
Alternative Uses
Best Use
Specialty Retail
$921.2K
$806.1K – $1.07M
NOI $64,486 @ 7.0% cap · market cap 10.77%
Second Best
Industrial
$524.5K
$458.9K – $611.9K
NOI $36,714 @ 7.0% cap · market cap 6.13%
Theoretical Best
Healthcare Medical
$1.11M
$970.3K – $1.29M
NOI $77,624 @ 7.0% cap · market cap 12.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
130
Businesses Nearby
25k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 54%
Shops & Services 36%
Home Improvements & Furnishings 10%
Dunkin' Donuts
Dining
12,800 visits/mo
0.3 miles
Mobil
Shops & Services
6,509 visits/mo
0.3 miles
Gilmore Home Center
Home Improvements & Furnishings
2,550 visits/mo
0.2 miles
O'Reilly Auto Parts
Shops & Services
1,682 visits/mo
0.3 miles
Sunrise Family Restaurant
Dining
979 visits/mo
0.3 miles
Demographics for 05735, VT
4,019
Population
1,746
Households
2.3
Avg Household Size
37
Median Age
39%
College-Educated
96%
High-School Grad
44.3 sq mi
ZIP Area
91
Density / Sq Mi
$76,816
Median Household Income
$25,593
Median Earnings
$1,310
Median Rent
$226,800
Median Home Value
Market
Vacancy Rate% for Retail in Northeast 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 - Single-level layout includes multiple dining areas, a bar, offices, and an apartment behind the restaurant.
Where is this conventional restaurant located?
The property is located at 272 Route 4a West Castleton, VT.
What is the asking price?
The asking price for this property is $599,000.
What are key features of this property?
This property features: 6,369‑square‑foot restaurant property with 274 feet of road frontage; Three separate dining areas plus a dedicated banquet room; Separate bar room and creemee stand
