Winery-Oriented Manufacturing
For Sale
$1,325,000
590 Merlot Dr, Prosser, WA 99350
Comm/Industrial, Prosser, WA
Property Size6,133 SF
Lot Size1.37 Acres
Price / SF$216.04
Days on Market92
Property Features for 590 Merlot Dr
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
OTH - Agt Remrk
Lot features
Corner
Directions
From I-82, take Exit 80 toward Prosser and head south on Gap Road. Continue into Prosser and turn onto Wine Country Road. Turn onto Merlot Drive and continue to 590 Merlot Drive. Property will be on your right.
Subdivision
13O - Prosser
Standard status
Active
APN
135944000012005
Size
6,133 SF
Lot size
1.37 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
8254
Utilities
Heating system
Forced Air
Cooling system
Central Air
Water source
Public
Building Details
Year built
2006
Flooring type
Concrete
Building materials
Frame
Roof type
Composition
Listing Agency:
Keller Williams Yakima Valley · Keller Williams Realty
(509) 966-1020
Listed By:
Russ Roberts, · License #26317
(509) 949-2192
Added: Jun 8
Changed: Sep 5
Last Checked: Sep 7 at 5:06PM
MLS# 26-1915
Copyright © 2026 Yakima Association of Realtors. 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.
Located at 590 Merlot Dr in Prosser, this manufacturing property contains a 6,133-square-foot commercial building constructed in 2006. The facility was previously occupied by Enodav Winery, supporting continued consideration for wine production, tasting-room operations, beverage uses, or related commercial activity. Interior features include concrete flooring, forced-air heating, and central air conditioning, with a frame construction system and composition roof.
The property is positioned near Merlot Drive, Chardonnay Avenue, Wine Country Road, and the I-82 access corridor. Its Prosser setting places the building among wine, hospitality, retail, and service uses. Public water serves the property, and the site includes land beyond the building for operational or customer-oriented functions, subject to applicable zoning and approvals.
The property is positioned near Merlot Drive, Chardonnay Avenue, Wine Country Road, and the I-82 access corridor. Its Prosser setting places the building among wine, hospitality, retail, and service uses. Public water serves the property, and the site includes land beyond the building for operational or customer-oriented functions, subject to applicable zoning and approvals.
Key Highlights
- 6,133 SF commercial building constructed in 2006
- Previously occupied by Enodav Winery
- Near Merlot Drive, Chardonnay Avenue, Wine Country Road, and the I‑82 access corridor
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
$48,622
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
3.67%
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%
$972,440
$972.4K
Cap Rate 7%
$694,600
$694.6K
Cap Rate 9%
$540,244
$540.2K
Market Conditions
NOI Build-Up for 6,133 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
$81.0K $13.20/SF
− Vacancy
−$6.2K −$1.00/SF
EGI
$74.8K $12.20/SF
− OpEx
−$26.2K −$4.27/SF
NOI
$48.6K $7.93/SF
Area
Benton County, WA
Vacancy
7.60%
Lease Rate
$13.20 /SF/Yr
Expense Ratio
35.00%
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%
$972,440
Cap Rate 7%
$694,600
Cap Rate 9%
$540,244
Alternative Uses
Best Use
Flex RnD
$694.6K
$607.8K – $810.4K
NOI $48,622 @ 7.0% cap · market cap 3.67%
Second Best
Industrial
$514.4K
$450.1K – $600.2K
NOI $36,011 @ 7.0% cap · market cap 2.72%
Theoretical Best
Office A
$1.70M
$1.49M – $1.98M
NOI $119,075 @ 7.0% cap · market cap 8.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
112
Businesses Nearby
Explore this area
Business Placement
Demographics for 99350, WA
13,240
Population
4,954
Households
2.7
Avg Household Size
36
Median Age
20%
College-Educated
79%
High-School Grad
600.1 sq mi
ZIP Area
22
Density / Sq Mi
$74,393
Median Household Income
$35,976
Median Earnings
$899
Median Rent
$289,100
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Manufacturing property - Former winery facility with production, storage, and customer-facing commercial use potential in Prosser’s wine-country corridor.
Where is this manufacturing property located?
The property is located at 590 Merlot Dr Prosser, WA.
What is the asking price?
The asking price for this property is $1,325,000.
What are key features of this property?
This property features: 6,133 SF commercial building constructed in 2006; Previously occupied by Enodav Winery; Near Merlot Drive, Chardonnay Avenue, Wine Country Road, and the I‑82 access corridor
