Modern Industrial Facility in
For Sale
Contact for pricing
Pending
275 W Lundgren Mill Dr., Sisters, OR 97759
Modern industrial facility with manufacturing, warehouse, and office space.
Property Size16,600 SF
Days on Market195
Property Features for 275 W Lundgren Mill Dr.
General Information
Standard status
Pending
Size
16,600 SF
Class
A
Property subtype
Industrial
Zoning
NSBP
Investment Type
Owner/User
Building Details
Year Built
2019
Listing Agency:
RE/MAX Key Properties
(541) 728-0033
Listed By:
Ryan Amerongen · License #OR 201209792
Source:
Crexi
Added: Jan 27
Changed: Aug 8
Last Checked: Aug 10 at 4:48AM
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 RE/MAX Key Properties
Investment Insights
Based on property information with market context.
This industrial facility, constructed in 2017, is located in Sisters, Oregon. The property features manufacturing and laboratory rooms, warehouse space, and office space. The 16,600 square foot building is designed to support a range of industrial applications. It is suitable for owner-users or investors seeking an industrial asset in a growing market. Building A is available for purchase independently or together with Building B. Building B is not available independently.
Key Highlights
- Modern industrial facility built in 2019
- Multi‑purpose property suitable for various industrial applications
- Features well‑designed manufacturing/laboratory rooms, warehouse, and office space
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
$238,386
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
7.23%
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%
$4,767,720
$4.8M
Cap Rate 7%
$3,405,514
$3.4M
Cap Rate 9%
$2,648,733
$2.6M
Market Conditions
NOI Build-Up for 16,600 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
$338.6K $20.40/SF
− Vacancy
−$20.8K −$1.25/SF
EGI
$317.8K $19.15/SF
− OpEx
−$79.5K −$4.79/SF
NOI
$238.4K $14.36/SF
Area
Deschutes County, OR
Vacancy
6.14%
Lease Rate
$20.40 /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%
$4,767,720
Cap Rate 7%
$3,405,514
Cap Rate 9%
$2,648,733
Alternative Uses
Best Use
Office B
$3.41M
$2.98M – $3.97M
NOI $238,386 @ 7.0% cap · market cap 7.23%
Second Best
Warehouse
$2.66M
$2.33M – $3.10M
NOI $186,147 @ 7.0% cap · market cap 5.65%
Theoretical Best
Retail
$5.71M
$5.00M – $6.67M
NOI $399,914 @ 7.0% cap · market cap 12.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
11
Businesses Nearby
Explore this area
Business Placement
Demographics for 97759, OR
7,787
Population
5,110
Households
1.5
Avg Household Size
55
Median Age
49%
College-Educated
95%
High-School Grad
545.7 sq mi
ZIP Area
14
Density / Sq Mi
$100,848
Median Household Income
$39,237
Median Earnings
$1,402
Median Rent
$695,400
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - Modern industrial facility with manufacturing, warehouse, and office space.
Where is this manufacturing property located?
The property is located at 275 W Lundgren Mill Dr. Sisters, OR.
What is the asking price?
The asking price for this property is $3,295,000.
What are key features of this property?
This property features: Modern industrial facility built in 2019; Multi‑purpose property suitable for various industrial applications; Features **well‑designed manufacturing/laboratory rooms, warehouse, and office space**
