Waterfront View Restaurant with Wraparound
For Sale
Contact for pricing
Pending
28201 Redondo Beach Dr S, Des Moines, WA 98198
Wraparound deck seats 178; dining room seats 138 with 45 at the bar.
Property Size9,574 SF
Days on Market632
Property Features for 28201 Redondo Beach Dr S
General Information
Standard status
Pending
Size
9,574 SF
Property subtype
RETAIL
Restaurant
Hood Type
Type I
Commercial Hood
Yes
Patio
Yes
Amenities
walk-up take-out window
signage easement
Listing Agency:
Kidder Mathews
(206) 332-1470
Listed By:
Kelly Gaddis · License #129429
(206) 332-1470
Source:
Moodyscre
Added: Nov 12, 2024
Changed: Jul 31
Last Checked: Aug 5 at 12:58PM
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 Kidder Mathews
Investment Insights
Based on property information with market context.
Waterfront, full-service view restaurant featuring a large wraparound deck that seats 178 guests. The interior dining room seats 138, with an additional 45 seats at the bar. The kitchen includes a 20-foot Type 1 hood plus substantial refrigeration and a large prep and service area. A secondary kitchen offers a 6-foot Type 1 hood and a walk-up take-out window, supported by a small street-side patio.
The property includes 2 parcels across the street totaling 29,390 SF, currently used as parking and an office/bakery. Those parcels are zoned CC with a height limit of 35 ft, and were previously used as an apartment. The purchase also includes a signage easement at the NW corner of 270th and 15th Ave S, and there is no DNR lease of the beach or tidelands.
The property includes 2 parcels across the street totaling 29,390 SF, currently used as parking and an office/bakery. Those parcels are zoned CC with a height limit of 35 ft, and were previously used as an apartment. The purchase also includes a signage easement at the NW corner of 270th and 15th Ave S, and there is no DNR lease of the beach or tidelands.
Key Highlights
- Wraparound deck seating for 178 guests with waterfront, Olympic, Vashon, and Puget Sound views
- Dining room seats 138 plus 45 seats at the bar
- 20‑foot Type 1 hood, plus extensive refrigeration, prep and service area
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
$204,644
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
3.44%
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%
$4,092,880
$4.1M
Cap Rate 7%
$2,923,486
$2.9M
Cap Rate 9%
$2,273,822
$2.3M
Market Conditions
NOI Build-Up for 9,574 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
$287.2K $30.00/SF
− Vacancy
−$14.4K −$1.50/SF
EGI
$272.9K $28.50/SF
− OpEx
−$68.2K −$7.13/SF
NOI
$204.6K $21.38/SF
Area
King County, WA
Vacancy
5.00%
Lease Rate
$30.00 /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%
$4,092,880
Cap Rate 7%
$2,923,486
Cap Rate 9%
$2,273,822
Alternative Uses
Best Use
Specialty Retail
$2.92M
$2.56M – $3.41M
NOI $204,644 @ 7.0% cap · market cap 3.44%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$3.83M
$3.36M – $4.47M
NOI $268,424 @ 7.0% cap · market cap 4.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
140
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98198, WA
38,727
Population
15,267
Households
2.5
Avg Household Size
39
Median Age
31%
College-Educated
87%
High-School Grad
7.7 sq mi
ZIP Area
5,029
Density / Sq Mi
$83,938
Median Household Income
$48,776
Median Earnings
$1,770
Median Rent
$527,100
Median Home Value
Market
Vacancy Rate% for Retail in West 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 - Wraparound deck seats 178; dining room seats 138 with 45 at the bar.
Where is this conventional restaurant located?
The property is located at 28201 Redondo Beach Dr S Des Moines, WA.
What is the asking price?
The asking price for this property is $5,950,000.
What are key features of this property?
This property features: Wraparound deck seating for 178 guests with waterfront, Olympic, Vashon, and Puget Sound views; Dining room seats 138 plus 45 seats at the bar; 20‑foot Type 1 hood, plus extensive refrigeration, prep and service area
