Kharacters Bar with Upper
For Sale
$999,995
3851 Shelford Street, Homer, AK 99603
Established bar property with an upper level formerly configured as an apartment.
Property Size1,950 SF
Price / SF$512.82
Days on Market208
Property Features for 3851 Shelford Street
General Information
Standard status
Active
Size
1,950 SF
Property subtype
General Commercial
Taxes and HOA fees
Annual Taxes
$1,905
Amenities
3
Bay, Mountain
Building Details
Year Built
1936
Listing Agency:
(907) 351-4794
Listed By:
Real Broker Alaska
(907) 351-4794
Source:
Xome
Added: Feb 3
Changed: Aug 30
Last Checked: Aug 30 at 2:19PM
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 Real Broker Alaska
Investment Insights
Based on property information with market context.
Kharacters is a bar property occupying 1,950 square feet on an 18,730-square-foot lot. Built in 1936, the property includes an upper level that previously functioned as an apartment, offering an additional component within the existing layout. The business adopted the Kharacters name in 1991.
The property is located in Homer, Alaska, on Kachemak Bay. Homer is identified as a destination associated with tourism, fishing, and boating, with a community that includes both local residents and visitors. Bay and mountain features are noted among the property’s exterior characteristics.
The property is located in Homer, Alaska, on Kachemak Bay. Homer is identified as a destination associated with tourism, fishing, and boating, with a community that includes both local residents and visitors. Bay and mountain features are noted among the property’s exterior characteristics.
Key Highlights
- 1,950‑square‑foot bar property on an 18,730‑square‑foot lot
- Upper level formerly used as an apartment
- Built in 1936
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
$38,849
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
3.88%
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%
$776,980
$777.0K
Cap Rate 7%
$554,986
$555.0K
Cap Rate 9%
$431,656
$431.7K
Market Conditions
NOI Build-Up for 1,950 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
$54.8K $28.08/SF
− Vacancy
−$3.0K −$1.52/SF
EGI
$51.8K $26.56/SF
− OpEx
−$12.9K −$6.64/SF
NOI
$38.8K $19.92/SF
Area
Kenai Peninsula County, AK
Vacancy
5.40%
Lease Rate
$28.08 /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%
$776,980
Cap Rate 7%
$554,986
Cap Rate 9%
$431,656
Alternative Uses
Best Use
Specialty Retail
$555.0K
$485.6K – $647.5K
NOI $38,849 @ 7.0% cap · market cap 3.88%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$13.52M
$11.83M – $15.78M
NOI $946,702 @ 7.0% cap · market cap 94.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 99603, AK
10,766
Population
6,251
Households
1.7
Avg Household Size
43
Median Age
39%
College-Educated
94%
High-School Grad
1,068.8 sq mi
ZIP Area
10
Density / Sq Mi
$76,368
Median Household Income
$41,530
Median Earnings
$1,236
Median Rent
$345,600
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?
Bar & Pub - Established bar property with an upper level formerly configured as an apartment.
Where is this bar & pub located?
The property is located at 3851 Shelford Street Homer, AK.
What is the asking price?
The asking price for this property is $999,995.
What are key features of this property?
This property features: 1,950‑square‑foot bar property on an 18,730‑square‑foot lot; Upper level formerly used as an apartment; Built in 1936
