Restaurant Property with
For Sale
$1,350,000
28405 Salmon River Hwy, Grand Ronde, OR 97347
Operating hospitality venue with a commercial kitchen, dining area, onsite parking, and direct highway exposure.
Property Size5,291 SF
Price / SF$255.15
Days on Market31
Property Features for 28405 Salmon River Hwy
General Information
Standard status
Active
Size
5,291 SF
Additional Details
Road Access
Yes
Building Details
Year Built
1947
Listing Agency:
eXp Realty, LLC
(503) 908-4908
Listed By:
Shawn Richardson · License #201210661
Source:
Rosecityrealtygroup
Added: Jul 31
Changed: Aug 29
Last Checked: Aug 26 at 10:09AM
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 eXp Realty, LLC
Investment Insights
Based on property information with market context.
This restaurant property at 28405 Salmon River Hwy includes an operating bar and dining area, supported by a functional commercial kitchen and onsite parking. The existing configuration is suited to continued restaurant and hospitality operations, with the building dating to 1947.
The property sits along Salmon River Highway in Grand Ronde, near Spirit Mountain Casino. Its location provides access toward the Oregon Coast, Salem, McMinnville, and the Willamette Valley, with surrounding travel activity connected to local, commuter, casino, and tourism traffic. The site may also accommodate other hospitality-oriented concepts identified for the property, including a brewery, taproom, café, lounge, or event venue.
The property sits along Salmon River Highway in Grand Ronde, near Spirit Mountain Casino. Its location provides access toward the Oregon Coast, Salem, McMinnville, and the Willamette Valley, with surrounding travel activity connected to local, commuter, casino, and tourism traffic. The site may also accommodate other hospitality-oriented concepts identified for the property, including a brewery, taproom, café, lounge, or event venue.
Key Highlights
- Restaurant and bar property at 28405 Salmon River Hwy, Grand Ronde, OR 97347
- Functional commercial kitchen with established bar and dining areas
- Onsite parking included
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
$73,143
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
5.42%
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%
$1,462,860
$1.5M
Cap Rate 7%
$1,044,900
$1.0M
Cap Rate 9%
$812,700
$812.7K
Market Conditions
NOI Build-Up for 5,291 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
$101.6K $19.20/SF
− Vacancy
−$4.1K −$0.77/SF
EGI
$97.5K $18.43/SF
− OpEx
−$24.4K −$4.61/SF
NOI
$73.1K $13.82/SF
Area
Polk County, OR
Vacancy
4.00%
Lease Rate
$19.20 /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%
$1,462,860
Cap Rate 7%
$1,044,900
Cap Rate 9%
$812,700
Alternative Uses
Best Use
Specialty Retail
$1.04M
$914.3K – $1.22M
NOI $73,143 @ 7.0% cap · market cap 5.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.40M
$1.23M – $1.64M
NOI $98,336 @ 7.0% cap · market cap 7.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
31
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 97347, OR
2,187
Population
752
Households
2.9
Avg Household Size
43
Median Age
4%
College-Educated
74%
High-School Grad
47.3 sq mi
ZIP Area
46
Density / Sq Mi
$41,250
Median Household Income
$30,758
Median Earnings
$754
Median Rent
$249,500
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?
Conventional restaurant - Operating hospitality venue with a commercial kitchen, dining area, onsite parking, and direct highway exposure.
Where is this conventional restaurant located?
The property is located at 28405 Salmon River Hwy Grand Ronde, OR.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Restaurant and bar property at 28405 Salmon River Hwy, Grand Ronde, OR 97347; Functional commercial kitchen with established bar and dining areas; Onsite parking included
