Former Bob's Red Mill
For Sale
$5,950,000
5000 Southeast International Way, Milwaukie, OR 97222
20,889 SF production and restaurant opportunity in Milwaukie, Oregon.
Property Size20,889 SF
Lot Size1.96 Acres
Price / SF$284.84
Days on Market205
Property Features for 5000 Southeast International Way
General Information
Standard status
Active
Size
20,889 SF
Lot size
1.96 Acres
Property subtype
Retail
Building Details
Building Size
20,889 SF
Year Built
2003
Listing Agency:
Capacity Commercial Group
(503) 222-2655
Listed By:
Nicholas Diamond · License #OR #200403266
Source:
Corfac
Added: Jan 26
Changed: Aug 19
Last Checked: Aug 19 at 5:37AM
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 Capacity Commercial Group
Investment Insights
Based on property information with market context.
This 20,889 square foot property, formerly a Bob's Red Mill Whole Grain Store, presents an owner/user opportunity for production and restaurant ventures. Situated off SE International Way in Milwaukie, Oregon, the property benefits from visibility from Highway 224 and resides within Milwaukie's Business-Industrial District. The site includes approximately 85 on-site parking spaces, equating to a ratio of approximately 4 spaces per 1,000 square feet. The property is located on a 1.96-acre lot (85,339 square feet) and is zoned Business Industrial (BI). The property will be delivered vacant. The building is a distinctive and easily recognizable property that uniquely combines a retail store, bakery, and restaurant. It features ample interior seating and a covered patio for outside dining. Additional features include solar panels, a large commercial-grade kitchen with a hood, and a loading dock. Pylon signage offers excellent branding visibility.
Key Highlights
- Vacant 20,889 SF building suitable for production, restaurant, or owner/user.
- Generous on‑site parking with approximately 85 spaces.
- Unique combination of retail store, bakery, and restaurant space with ample interior seating and a covered outdoor patio.
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
$290,530
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
4.88%
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%
$5,810,600
$5.8M
Cap Rate 7%
$4,150,429
$4.2M
Cap Rate 9%
$3,228,111
$3.2M
Market Conditions
NOI Build-Up for 20,889 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
$448.7K $21.48/SF
− Vacancy
−$33.7K −$1.61/SF
EGI
$415.0K $19.87/SF
− OpEx
−$124.5K −$5.96/SF
NOI
$290.5K $13.91/SF
Area
Clackamas County, OR
Vacancy
7.50%
Lease Rate
$21.48 /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%
$5,810,600
Cap Rate 7%
$4,150,429
Cap Rate 9%
$3,228,111
Alternative Uses
Best Use
Retail
$4.15M
$3.63M – $4.84M
NOI $290,530 @ 7.0% cap · market cap 4.88%
Second Best
Specialty Retail
$3.73M
$3.26M – $4.35M
NOI $260,851 @ 7.0% cap · market cap 4.38%
Theoretical Best
Office A
$5.64M
$4.93M – $6.58M
NOI $394,692 @ 7.0% cap · market cap 6.63%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
680
Businesses Nearby
Explore this area
Business Placement
Demographics for 97222, OR
36,316
Population
16,910
Households
2.1
Avg Household Size
41
Median Age
38%
College-Educated
95%
High-School Grad
8.6 sq mi
ZIP Area
4,223
Density / Sq Mi
$77,441
Median Household Income
$48,298
Median Earnings
$1,592
Median Rent
$465,100
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?
Retail property - 20,889 SF production and restaurant opportunity in Milwaukie, Oregon.
Where is this retail property located?
The property is located at 5000 Southeast International Way Milwaukie, OR.
What is the asking price?
The asking price for this property is $5,950,000.
What are key features of this property?
This property features: Vacant 20,889 SF building suitable for production, restaurant, or owner/user.; Generous on‑site parking with approximately 85 spaces.; Unique combination of retail store, bakery, and restaurant space with ample interior seating and a covered outdoor patio.
