Turnkey Grocery and Deli
For Sale
$850,000
599 PACIFIC, Gearhart, OR 97138
Remodeled downtown space equipped with coolers, deli cases, ovens, and two half bathrooms for grocery, deli, retail, or office use.
Property Size4,122 SF
Price / SF$206.21
Days on Market61
Property Features for 599 PACIFIC
General Information
Standard status
Active
Size
4,122 SF
Property subtype
Commercial
Additional Details
Business Included
Yes
Taxes and HOA fees
Annual Taxes
$4,736
Amenities
Built Up Roof
Flat Roof
Forced Air Heating
Membrane Roof
Off Street
On Site
Building Details
Year Built
1950
Listing Agency:
WINDERMERE REALTY TRUST
(503) 738-8522
Listed By:
JODY CONSER · License #201237903
Source:
Corcoran
Added: Jun 13
Changed: Aug 10
Last Checked: Aug 11 at 9:16AM
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 WINDERMERE REALTY TRUST
Investment Insights
Based on property information with market context.
This turnkey property is designed for food and counter-based concepts, with built-out improvements including coolers, deli cases, and ovens. Interior accommodations include two half bathrooms, supporting operation for customers and staff. The back of the building is currently used for storage, and prior photos indicate the space functioned as a restaurant, bar, and deli as of 2022.
Located in downtown Gearhart, the property is described as close to the beach, shopping, and schools. While those surrounding amenities support general walk-in and retail convenience, the building’s outfitted interior is what enables the space to be used right away for a variety of service-oriented businesses.
The existing kitchen and merchandising equipment make the layout particularly suitable for a grocery and deli operator, though the property also lends itself to alternative retail or office use given its remodeled condition and dedicated storage area. If you’re looking for a self-contained, ready-to-operate commercial space with food service infrastructure already in place, this is worth a closer look.
Located in downtown Gearhart, the property is described as close to the beach, shopping, and schools. While those surrounding amenities support general walk-in and retail convenience, the building’s outfitted interior is what enables the space to be used right away for a variety of service-oriented businesses.
The existing kitchen and merchandising equipment make the layout particularly suitable for a grocery and deli operator, though the property also lends itself to alternative retail or office use given its remodeled condition and dedicated storage area. If you’re looking for a self-contained, ready-to-operate commercial space with food service infrastructure already in place, this is worth a closer look.
Key Highlights
- Remodeled downtown Gearhart space built in 1950
- Equipped with coolers, deli cases, and ovens
- Includes two half bathrooms
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
$63,336
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
7.45%
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%
$1,266,720
$1.3M
Cap Rate 7%
$904,800
$904.8K
Cap Rate 9%
$703,733
$703.7K
Market Conditions
NOI Build-Up for 4,122 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
$133.1K $32.28/SF
− Vacancy
−$42.6K −$10.33/SF
EGI
$90.5K $21.95/SF
− OpEx
−$27.1K −$6.59/SF
NOI
$63.3K $15.37/SF
Area
Clatsop County, OR
Vacancy
32.00%
Lease Rate
$32.28 /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%
$1,266,720
Cap Rate 7%
$904,800
Cap Rate 9%
$703,733
Alternative Uses
Best Use
Retail
$904.8K
$791.7K – $1.06M
NOI $63,336 @ 7.0% cap · market cap 7.45%
Second Best
Specialty Retail
$872.9K
$763.8K – $1.02M
NOI $61,100 @ 7.0% cap · market cap 7.19%
Theoretical Best
Office A
$1.20M
$1.05M – $1.40M
NOI $83,891 @ 7.0% cap · market cap 9.87%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
269
Businesses Nearby
6k
Monthly Visits Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 89%
Home Improvements & Furnishings 11%
Dollar General
Shops & Services
5,272 visits/mo
0.1 miles
Sherwin-Williams Paint Store
Home Improvements & Furnishings
655 visits/mo
0.1 miles
Demographics for 97138, OR
11,248
Population
7,785
Households
1.4
Avg Household Size
48
Median Age
28%
College-Educated
92%
High-School Grad
146.0 sq mi
ZIP Area
77
Density / Sq Mi
$51,993
Median Household Income
$39,285
Median Earnings
$1,004
Median Rent
$433,200
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?
Grocery and convenience store - Remodeled downtown space equipped with coolers, deli cases, ovens, and two half bathrooms for grocery, deli, retail, or office use.
Where is this grocery and convenience store located?
The property is located at 599 PACIFIC Gearhart, OR.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: Remodeled downtown Gearhart space built in 1950; Equipped with coolers, deli cases, and ovens; Includes two half bathrooms
