Historic Craftsman Mixed-Use
For Sale
$1,500,000
3906 S KELLY Ave, Portland, OR 97239
CommercialSale, Portland, OR
Property Size3,186 SF
Lot Size0.23 Acres
Price / SF$470.81
Days on Market452
Property Features for 3906 S KELLY Ave
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
RH
View
River, Territorial
Directions
S Kelly, near OHSU S Waterfront
Subdivision
_148
Standard status
Active
APN
R129301
Size
3,186 SF
Lot size
0.23 Acres
Taxes and HOA fees
Tax Description
CARUTHERS ADD, BLOCK 177, LOT 7&8
Tax Annual Amount
16732
Legal Description
CARUTHERS ADD, BLOCK 177, LOT 7&8
Utilities
Heating system
Forced Air
Cooling system
Central Air
Amenities
wraparound porch
balconies
Mt Hood views
exquisite architectural details
rich woodwork and trim
built-ins
fireplaces
hardwood and wood floors
spacious rooms with high ceilings
crown moldings
tin ceilings
full dry basement
Building Details
Year built
1908
Floors in Building
3
Building materials
Cedar, FullBasement, WoodSiding
Roof type
Composition
Listing Agency:
Real Broker
(855) 450-0442
Listed By:
Beth Earnest · License #920700088
(503) 330-7400
Added: Jun 1, 2025
Changed: Aug 25
Last Checked: Aug 26 at 1:06PM
MLS# 597424242
Copyright © 2026 Regional Multiple Listing Services. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
The original Kelly House is a 3,186-square-foot mixed-use building constructed in 1908, with commercial and residential potential. The restored Craftsman property includes spacious rooms, high ceilings, hardwood and wood flooring, built-in cabinetry, fireplaces, crown molding, and tin ceilings. A wraparound porch, balconies, and Mt Hood views add to the building’s character, while the full dry basement provides additional area for future development. Cedar and wood siding, a composition roof, forced-air heat, and central air are also in place.
The property occupies a 0.23-acre lot at 3906 S KELLY Ave in Portland’s South Waterfront area, near the OHSU Plaza and OHSU Center for Health & Healing I & II. Ten off-street parking spaces are provided on a paved portion of the approximately 100-by-100-foot lot. RH zoning supports the property’s mixed-use classification.
The property occupies a 0.23-acre lot at 3906 S KELLY Ave in Portland’s South Waterfront area, near the OHSU Plaza and OHSU Center for Health & Healing I & II. Ten off-street parking spaces are provided on a paved portion of the approximately 100-by-100-foot lot. RH zoning supports the property’s mixed-use classification.
Key Highlights
- 3,186‑square‑foot mixed‑use building constructed in 1908
- 0.23‑acre lot with an approximately 100‑by‑100‑foot configuration
- 10 off‑street parking spaces on a paved 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
$46,429
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
3.10%
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%
$928,580
$928.6K
Cap Rate 7%
$663,271
$663.3K
Cap Rate 9%
$515,878
$515.9K
Market Conditions
NOI Build-Up for 3,186 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
$84.1K $26.40/SF
− Vacancy
−$6.7K −$2.11/SF
EGI
$77.4K $24.29/SF
− OpEx
−$31.0K −$9.72/SF
NOI
$46.4K $14.57/SF
Area
Portland, OR
Vacancy
8.00%
Lease Rate
$26.40 /SF/Yr
Expense Ratio
40.00%
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%
$928,580
Cap Rate 7%
$663,271
Cap Rate 9%
$515,878
Alternative Uses
Best Use
Healthcare Medical
$663.3K
$580.4K – $773.8K
NOI $46,429 @ 7.0% cap · market cap 3.10%
Second Best
Mixed Use
$614.4K
$537.6K – $716.9K
NOI $43,011 @ 7.0% cap · market cap 2.87%
Theoretical Best
Office A
$894.7K
$782.9K – $1.04M
NOI $62,630 @ 7.0% cap · market cap 4.18%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,413
Businesses Nearby
Explore this area
Business Placement
Demographics for 97239, OR
18,323
Population
9,963
Households
1.8
Avg Household Size
39
Median Age
74%
College-Educated
99%
High-School Grad
3.6 sq mi
ZIP Area
5,090
Density / Sq Mi
$108,795
Median Household Income
$67,384
Median Earnings
$1,749
Median Rent
$713,100
Median Home Value
Market
Vacancy Rate% for Office in Portland, OR
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Restored building offers flexible commercial rooms, basement space, architectural detailing, and off-street parking near OHSU facilities.
Where is this mixed-use property located?
The property is located at 3906 S KELLY Ave Portland, OR.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 3,186‑square‑foot mixed‑use building constructed in 1908; 0.23‑acre lot with an approximately 100‑by‑100‑foot configuration; 10 off‑street parking spaces on a paved area
