Historic Restaurant with
For Sale
$975,000
305 E American Ave, Oracle, AZ 85623
Historic restaurant property with commercial kitchen, patio on American Ave, lounge access breezeway, and on-site banquet rooms.
Property Size12,535 SF
Price / SF$77.78
Days on Market178
Property Features for 305 E American Ave
General Information
Standard status
Active
Size
12,535 SF
Property subtype
Commercial
Additional Details
Road Access
Yes
Amenities
commercial kitchen
breezeway
outdoor patio with bar
banquet rooms
Building Details
Year Built
1974
Year Renovated
2008
Listing Agency:
Ironwood Properties
Listed By:
Adrian R Darimont
(520) 975-1984
Source:
Exploretucsonproperties
Added: Mar 20
Changed: Sep 9
Last Checked: Sep 12 at 10:45AM
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 Ironwood Properties
Investment Insights
Based on property information with market context.
The Oracle Inn Steak House & Lounge is a historic restaurant and lounge property, with an addition recorded in 1974 and a total remodel completed in 2008. The building features a commercial kitchen serving both the restaurant and bar sides, along with a breezeway that allows restaurant patrons to go directly into the lounge after dinner. Additional amenities include two banquet rooms and a large outdoor patio on the north side of the building with its own bar and seating area.
The property fronts the main street of American Ave and offers corner-to-corner frontage. Lots of parking is available around the building, and the sale includes an adjacent parcel just south of the main parking lot for additional parking.
Offered for sale as a turn-key restaurant and lounge configuration with dedicated food service space, indoor event rooms, and a street-facing patio with bar seating.
The property fronts the main street of American Ave and offers corner-to-corner frontage. Lots of parking is available around the building, and the sale includes an adjacent parcel just south of the main parking lot for additional parking.
Offered for sale as a turn-key restaurant and lounge configuration with dedicated food service space, indoor event rooms, and a street-facing patio with bar seating.
Key Highlights
- Historic Oracle Inn Steak House & Lounge; remodeled in 2008
- Fronts on American Ave with corner‑to‑corner frontage and lots of parking around the building
- Adjacent parcel just south of the main parking lot included for extra parking
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
$60,877
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
6.24%
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%
$1,217,540
$1.2M
Cap Rate 7%
$869,671
$869.7K
Cap Rate 9%
$676,411
$676.4K
Market Conditions
NOI Build-Up for 12,535 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
$99.3K $7.92/SF
− Vacancy
−$12.3K −$0.98/SF
EGI
$87.0K $6.94/SF
− OpEx
−$26.1K −$2.08/SF
NOI
$60.9K $4.86/SF
Area
Pinal County, AZ
Vacancy
12.40%
Lease Rate
$7.92 /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%
$1,217,540
Cap Rate 7%
$869,671
Cap Rate 9%
$676,411
Alternative Uses
Best Use
Specialty Retail
$2.26M
$1.98M – $2.64M
NOI $158,223 @ 7.0% cap · market cap 16.23%
Second Best
Industrial
$869.7K
$761.0K – $1.01M
NOI $60,877 @ 7.0% cap · market cap 6.24%
Theoretical Best
Office A
$3.47M
$3.03M – $4.04M
NOI $242,581 @ 7.0% cap · market cap 24.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
90
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 85623, AZ
4,974
Population
3,017
Households
1.6
Avg Household Size
63
Median Age
41%
College-Educated
94%
High-School Grad
188.6 sq mi
ZIP Area
26
Density / Sq Mi
$68,219
Median Household Income
$44,774
Median Earnings
$2,620
Median Rent
$384,700
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Retail in West region
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Historic restaurant property with commercial kitchen, patio on American Ave, lounge access breezeway, and on-site banquet rooms.
Where is this conventional restaurant located?
The property is located at 305 E American Ave Oracle, AZ.
What is the asking price?
The asking price for this property is $975,000.
What are key features of this property?
This property features: Historic Oracle Inn Steak House & Lounge; remodeled in 2008; Fronts on American Ave with corner‑to‑corner frontage and lots of parking around the building; Adjacent parcel just south of the main parking lot included for extra parking
