Red Pepper Restaurant with Kitchen
For Sale
Contact for pricing
4545 University Way NE, Seattle, WA 98105
Established restaurant space with commercial cooking infrastructure, refrigerated storage, and seating for up to 75 guests.
Property Size2,000 SF
Price / SF$125
Days on Market8
Property Features for 4545 University Way NE
General Information
Standard status
Active
Size
2,000 SF
Property subtype
Retail, Business for Sale
Restaurant
Seating Capacity
75
Hood Type
Type I
Commercial Hood
Yes
Additional Details
Business Included
Yes
Listing Agency:
CCM Commercial
Listed By:
Cal Mitchell · License #WA
Source:
Crexi
Added: Aug 29
Changed: Sep 2
Last Checked: Sep 2 at 2:05PM
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 CCM Commercial
Investment Insights
Based on property information with market context.
Red Pepper Restaurant is a 2,000-square-foot restaurant property at 4545 University Way NE in Seattle, Washington. The premises include restaurant improvements, a Type 1 hood measuring 12 feet, multiple coolers and freezers, and seating for as many as 75 people.
The current lease has 3 years remaining and includes a 5-year option. The combination of food-service infrastructure, dedicated refrigeration, and existing seating supports continued restaurant operations within the space.
The current lease has 3 years remaining and includes a 5-year option. The combination of food-service infrastructure, dedicated refrigeration, and existing seating supports continued restaurant operations within the space.
Key Highlights
- 2,000 SF restaurant premises at 4545 University Way NE, Seattle, WA 98105
- 12 foot Type 1 hood for commercial cooking operations
- Multiple coolers and freezers 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
$18,103
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
7.24%
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%
$362,060
$362.1K
Cap Rate 7%
$258,614
$258.6K
Cap Rate 9%
$201,144
$201.1K
Market Conditions
NOI Build-Up for 2,000 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
$28.1K $14.04/SF
− Vacancy
−$2.2K −$1.11/SF
EGI
$25.9K $12.93/SF
− OpEx
−$7.8K −$3.88/SF
NOI
$18.1K $9.05/SF
Area
Seattle, WA
Vacancy
7.90%
Lease Rate
$14.04 /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%
$362,060
Cap Rate 7%
$258,614
Cap Rate 9%
$201,144
Alternative Uses
Best Use
Specialty Retail
$481.4K
$421.2K – $561.6K
NOI $33,696 @ 7.0% cap · market cap 13.48%
Second Best
Industrial
$258.6K
$226.3K – $301.7K
NOI $18,103 @ 7.0% cap · market cap 7.24%
Theoretical Best
Office A
$601.7K
$526.5K – $702.0K
NOI $42,119 @ 7.0% cap · market cap 16.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Commercial hood
Location Intelligence
Trade Area within ½ mile
3,515
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 98105, WA
49,151
Population
20,582
Households
2.4
Avg Household Size
27
Median Age
77%
College-Educated
99%
High-School Grad
3.8 sq mi
ZIP Area
12,934
Density / Sq Mi
$78,691
Median Household Income
$34,947
Median Earnings
$1,803
Median Rent
$1,261,100
Median Home Value
Market
Vacancy Rate% for Retail in Seattle, WA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Established restaurant space with commercial cooking infrastructure, refrigerated storage, and seating for up to 75 guests.
Where is this conventional restaurant located?
The property is located at 4545 University Way NE Seattle, WA.
What is the asking price?
The asking price for this property is $250,000.
What are key features of this property?
This property features: 2,000 SF restaurant premises at 4545 University Way NE, Seattle, WA 98105; 12 foot Type 1 hood for commercial cooking operations; Multiple coolers and freezers included
