Church Building with Commercial
For Sale
$999,000
5740 NE LOMBARD, Portland, OR 97218
Church building with food pantry and development potential for sale.
Property Size6,035 SF
Price / SF$165.53
Days on Market431
Property Features for 5740 NE LOMBARD
General Information
Standard status
Active
Size
6,035 SF
Taxes and HOA fees
Annual Taxes
$20,790
Building Details
Year Built
1996
Listing Agency:
VANDERMEER REAL ESTATE
(503) 489-8381
Listed By:
ADAM HARVEY
Source:
Corcoran
Added: Jun 5, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 VANDERMEER REAL ESTATE
Investment Insights
Based on property information with market context.
This property features a 6,035 square foot church building situated on 0.59 acres of land. The sanctuary provides seating for 240 individuals and includes a nursery, three smaller offices or classrooms, and three restrooms. On-site parking is available with 30 spaces. The CM1 zoning designation allows for a variety of use options. The listing also includes a neighboring 2,400 square foot commercial building on 0.15 acres, currently used as a food pantry. This second building is equipped with a kitchen space, one restroom, and 12 on-site parking spaces. Both buildings can be purchased separately.
Key Highlights
- Includes two buildings: a 6,035 SF church and a 2,400 SF commercial building.
- The church sanctuary seats 240 people.
- CM1 zoning offers diverse usage possibilities.
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
$81,255
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
8.13%
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%
$1,625,100
$1.6M
Cap Rate 7%
$1,160,786
$1.2M
Cap Rate 9%
$902,833
$902.8K
Market Conditions
NOI Build-Up for 6,035 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
$115.9K $19.20/SF
− Vacancy
−$7.5K −$1.25/SF
EGI
$108.3K $17.95/SF
− OpEx
−$27.1K −$4.49/SF
NOI
$81.3K $13.46/SF
Area
Portland, OR
Vacancy
6.50%
Lease Rate
$19.20 /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%
$1,625,100
Cap Rate 7%
$1,160,786
Cap Rate 9%
$902,833
Alternative Uses
Best Use
Specialty Retail
$1.16M
$1.02M – $1.35M
NOI $81,255 @ 7.0% cap · market cap 8.13%
Second Best
Retail
$1.00M
$879.2K – $1.17M
NOI $70,338 @ 7.0% cap · market cap 7.04%
Theoretical Best
Office A
$1.69M
$1.48M – $1.98M
NOI $118,634 @ 7.0% cap · market cap 11.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
478
Businesses Nearby
Explore this area
Business Placement
Demographics for 97218, OR
14,748
Population
6,440
Households
2.3
Avg Household Size
38
Median Age
51%
College-Educated
91%
High-School Grad
6.7 sq mi
ZIP Area
2,201
Density / Sq Mi
$81,367
Median Household Income
$45,830
Median Earnings
$1,440
Median Rent
$493,300
Median Home Value
Market
Vacancy Rate% for Retail in Portland, OR
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Church & religious facility - Church building with food pantry and development potential for sale.
Where is this church & religious facility located?
The property is located at 5740 NE LOMBARD Portland, OR.
What is the asking price?
The asking price for this property is $999,000.
What are key features of this property?
This property features: Includes two buildings: a 6,035 SF church and a 2,400 SF commercial building.; The church sanctuary seats 240 people.; CM1 zoning offers diverse usage possibilities.
